Trump’s Federal Reserve Strategy: Balancing Beliefs and Experience in the Search for a Chair

The process to select the next chair of the U.S. Federal Reserve has entered a decisive stage, as President Donald Trump narrows his list of five potential candidates, with a final choice anticipated before the end of the year, Treasury Secretary Scott Bessent stated. The contenders are current Fed board members Christopher Waller and Michelle Bowman, former Fed governor Kevin Warsh, White House National Economic Council Director Kevin Hassett, and Rick Rieder from BlackRock. Bessent revealed these names during an October 27 press event aboard Air Force One, emphasizing that additional interviews will take place before he presents his ultimate recommendation to Trump after Thanksgiving, according to

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President Trump, who has frequently criticized outgoing Fed Chair Jerome Powell for being overly cautious with rate reductions, has made his expectations for the new leader clear. "We have a person who is not at all smart right now," Trump commented, once again expressing his view that Powell has hindered economic expansion by postponing interest rate cuts, as reported by

. Trump also made it clear that he does not expect Bessent to leave his Treasury post to become Fed chair—a role that generally spans 14 years, with the next opening scheduled for early 2026, according to the Business Times.

The shortlisted candidates bring a range of backgrounds from academia, the private sector, and government. Waller, known for his moderate stance on the Fed board, supports policy decisions based on economic data, while Rieder offers financial industry insight from his time at BlackRock. Hassett, a close Trump associate, previously worked with the National Economic Council, and Warsh, an experienced Fed veteran, has consistently prioritized controlling inflation. The selection process highlights the administration’s intent to combine professional expertise with ideological compatibility, especially as the Fed prepares for another rate cut at its October 29 session, according to

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Initially, Yellen was in charge of screening candidates, but she has since stepped aside, leaving Bessent to conduct the interviews, according to

. This adjustment demonstrates a more streamlined approach by the administration, though some experts have raised concerns about the speed of the process given the significant influence the chair holds over monetary policy. The incoming Fed chair will face a challenging economic environment, including persistent inflation issues and the likelihood of additional rate cuts in 2026, Bloomberg reported.

The final decision, expected by December, will shape the Federal Reserve’s direction for years to come. With Trump’s strong involvement in the appointment, the next chair is expected to support his preference for a more flexible monetary policy, in line with his broader economic goals, the Business Times noted.