The competition for the Federal Reserve Chair has intensified! It is reported that Bowman, Jefferson, and Logan have entered the candidate list
The list of candidates for the Federal Reserve Chair has expanded, with Vice Chair Michelle Bowman, Philip Jefferson, and Dallas Fed President Lorie Logan included. Treasury Secretary Scott Bessenet will interview other candidates, and Trump is expected to announce the final decision in the fall. Other candidates include Kevin Hassett and Christopher Waller. Trump has expressed dissatisfaction with the Federal Reserve's interest rates, and it remains uncertain whether Powell will continue in his position. The new chair must be approved by the Senate
According to the Zhitong Finance APP, two U.S. government officials revealed that Federal Reserve Vice Chairs Michelle Bowman and Philip Jefferson, as well as Dallas Fed President Lorie Logan, are on the list of candidates for the Federal Reserve Chair. U.S. Treasury Secretary Scott Basset, who is responsible for this selection, will interview other candidates in the coming weeks. These officials also indicated that U.S. President Trump is expected to announce the final decision this fall.
These insiders stated that other candidates include current White House National Economic Council Director Kevin Hassett, Federal Reserve Governor Christopher Waller, economist Mark Zandi, and former Federal Reserve officials Kevin Warsh and James Bullard.
Last week, Trump nominated Stephen Moore, Chairman of the White House Council of Economic Advisers, to fill the vacancy left by the sudden resignation of Federal Reserve Governor Adriana Kugler. Trump stated that Moore's term would last until January 31, 2026, while continuing to search for a long-term replacement for this position.
Officials stated that since Moore's nomination will be submitted for Senate confirmation, the Trump team believes there is no need to rush to find a new Federal Reserve Chair.
Officials indicated that Basset will interview all candidates for Federal Reserve Chair and then recommend a list of candidates for the president to meet.
The list of candidates for Federal Reserve Chair expands
Trump believes that interest rates are too high and has been sharply criticizing the Federal Reserve this year, particularly targeting Jerome Powell, the Federal Reserve Chair he selected in 2017.
The next Federal Reserve policy meeting is scheduled for September 16-17 in Washington.
However, the options for replacing Powell may be more limited than usual. Federal Reserve Chairs typically leave the Federal Reserve after their term ends. However, Powell has refused to disclose whether he will leave the Federal Reserve after his term ends in May next year. If he chooses to stay, he can remain a governor until 2028.
Nominations for external candidates to enter the Federal Reserve or to elevate regional Fed presidents to the position of Federal Reserve Chair require Senate approval.
Trump appointed Bowman to the Federal Reserve in 2018 and appointed her as Vice Chair for supervision this year. When the Federal Reserve's rate-setting committee decided to keep rates unchanged for the fifth consecutive time in July, Bowman and Waller dissented, advocating for a 25 basis point rate cut.
Jefferson was appointed to the Federal Reserve by former U.S. President Joe Biden in 2022 and was appointed Vice Chair by Biden in 2023. His appointments received broad bipartisan support each time.
Jefferson is expected to become the first Black Chair of the Federal Reserve, and he supported the decision to maintain stable interest rates this year.
Logan became the President of the Dallas Fed in 2022, having previously served as a securities portfolio manager at the New York Fed. She also supported keeping interest rates unchanged this year and has frequently mentioned the need to guard against inflation caused by tariffs.
The Federal Open Market Committee (FOMC) is responsible for setting interest rate policy, and its members include all seven Federal Reserve governors, the President of the New York Fed, and four of the remaining 11 regional Fed presidents (participating on a rotating basis) According to reports, Hassett has met with Trump to discuss the position of Federal Reserve Chairman and left a deep impression on Trump and his team. Waller ran for Federal Reserve Chairman in 2017 but was ultimately defeated by Powell. Last November, Waller was also considered for the position of U.S. Secretary of the Treasury.
According to media reports last week, Waller has met with the Trump team. Waller is willing to formulate policies based on forecasts rather than existing data, and has a deep understanding of the Federal Reserve system, which has impressed Trump's advisors
