Treasury Secretary Scott Bessent is reportedly considering three more candidates for the next Federal Reserve chair: Vice Chairs Michelle Bowman and Philip Jefferson, and Dallas Fed President Lorie Logan.
However, other candidates will be interviewed in the coming weeks, Bloomberg reported based on talks with two administration officials. Potential candidates include President Donald Trump’s economic advisor Kevin Hassett, Fed Governor Christopher Waller, economist Marc Sumerlin and former Fed officials Kevin Warsh and James Bullard.
The Fed chair position is expected to open in May next year when Jerome Powell’s term ends. Powell could remain on the Board of Governors until 2028. Sources say Trump, who has been pressuring Powell to resign over concerns that rates are too high, may announce his choice for the new chair this fall. The nominee could serve as a shadow Fed president, influencing markets before officially taking the position.
Waller and Bowman, both Trump appointees, dissented at the Federal Open Market Committee’s last meeting, favoring a rate cut rather than maintaining current levels. Bowman, appointed to the Fed in 2018, was named vice chair of supervision earlier this year.
Jefferson, appointed to the Fed board in 2022 and made vice chair in 2023 by the Biden administration with bipartisan support, and Logan, who became Dallas Fed president in 2022, have both voiced support for keeping rates steady.
In late July, the Fed held rates at a range of 4.25% to 4.5%. Market participants expect a rate cut in September.
Fed recent changes include the resignation of Governor Adriana D. Kugler on August 8. She joined the board in September 2023, with her term set to expire in January 2026. Trump has nominated Stephen Miran, his top economic adviser, to fill the vacancy, pending Senate confirmation.
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