The Trump administration is expanding its candidate list to replace Federal Reserve Chairman Jerome Powell, which will expire next year. The goal is to find candidates who can order trust both President Donald Trump and the financial markets.
Among the names considered, according to the executive authorities, include current Federal Reserve vice-chairs Philip Jefferson and Michelle Bowman, Dallas Federal President Rory Logan, former President St. Louis Fried Jim Bullard, and macroeconomic adviser Mark Schmalin. Officials noted that other private sector figures could also be added to the list.
These new candidates are being considered alongside former Fed board member Kevin Wahsh and current Fed board member Christopher Waller, as well as director Kevin Hassett, the National Economic Council.
The list also suggests that Trump could potentially choose someone from within the Fed to replace Powell, who repeatedly pressured him to lower interest rates. The new chair needs to maintain the institution’s credibility in the fight against a balance between inflation and Trump’s expectations for low interest rates. He will also be responsible for bank surveillance, payment systems and interest rate decisions at the Fed, along with thousands of employees.
Despite being appointed by former President Joe Biden, Jefferson received bipartisan support and won Senate confirmation by a vote of 88-10. Many candidates on the list argue that the Fed should reduce borrowing costs and emphasize the importance of institutions that are independent of short-term politics.
“If the conditions for success are met, we will protect the value of the dollar, maintain the reserve currency situation and target low and stable inflation,” Bullard told CNBC. Bullard and Sumerlin nominations were first reported in the Wall Street Journal, while the new Fed candidate was first reported in Bloomberg News.
Treasury Secretary Scott Bessent confirmed last week that the process of selecting Powell’s successors for CNBC officially began but does not share a timeline. While that process was underway, Trump nominated his chief economist Stephen Milan to fill the Fed’s open seat. However, the location expires in January. Milan argues that the Fed should be subject to greater political surveillance.
Philip Jefferson wasn’t keen on the Fed adding cryptocurrency to its preparations
Philip Jefferson has addressed the Fed’s stance on Bitcoin and other cryptocurrency reserves. He said that digital assets like Bitcoin are subject to widespread interest and debate in the market, but the Fed cannot add these assets to the balance sheet due to legal restrictions.
*This is not investment advice.
