U.S. President Donald Trump said on Tuesday he would “shortly” announce his nominee for a vacant seat on the Federal Reserve’s Board of Governors, with the possibility of also naming a candidate for Fed Chair, ahead of Jerome Powell’s term expiring in May 2026.
In an interview with CNBC, Trump said he was “pleasantly surprised” by the early resignation of Fed Governor Adriana Kugler, whose term was due to end in January. The move has accelerated the timeline for key monetary policy appointments, including the opportunity to shape the leadership of the U.S. central bank.
“It’ll be one of four people,” Trump said, naming economic adviser Kevin Hassett and former Fed Governor Kevin Warsh as strong contenders. He did not disclose the remaining two.
Strategic Shift In Fed Leadership Expected
Trump confirmed that Treasury Secretary Scott Bessent is no longer under consideration, as Bessent prefers to remain in his current role. The President is reportedly evaluating Fed Governor Christopher Waller, known for advocating rate cuts, though not as aggressively as Trump has publicly desired.
“There are numerous people that are qualified… I am going to be announcing that very shortly,” Trump said, leaving open the possibility that the appointee to Kugler’s seat could later be elevated to chair.
The new Fed governor would serve out the remainder of Kugler’s term and require Senate confirmation. A separate confirmation would be needed for a full 14-year term or elevation to Federal Reserve Chair.
Trump-Powell Divide On Monetary Policy Deepens
President Trump has continued to criticize Fed Chair Jerome Powell for what he sees as insufficient rate cuts, despite inflation remaining above the 2% target and signs of economic softness. He is expected to favor a more dovish, growth-focused approach as inflation moderates and the labor market weakens.
Markets are closely watching the nomination, which could influence future interest rate policy, bond markets, and the U.S. dollar outlook in the lead-up to 2026.
