President Donald Trump announced his intention to select a new Federal Reserve Board member and possibly the Fed chair after Governor Adriana Kugler unexpectedly departed from her position. During his CNBC interview Trump announced that he had taken Secretary Scott Bessent out of consideration because Bessent wanted to stay at Treasury.
The President revealed four potential candidates for the position while expressing admiration for economic adviser Kevin Hassett and former Fed Governor Kevin Warsh. The reports indicate that Fed Governor Christopher Waller remains a candidate despite his differing rate-cut approach from Trump’s desired direction.
The appointee to Kugler’s seat would serve a shortened term before requiring Senate reconfirmation next year. The current Fed Chair Jerome Powell faces criticism from Trump because the central bank maintains its cautious approach to rate cuts despite economic growth slowdown and ongoing inflation.
The appointment allows Trump to select Fed leaders who share his economic vision before Powell’s May expiration of his term.
