Trump considers four finalists for Fed chair
'I asked him just last night, 'Is this something you want?' 'Nope, I want to stay where I am.' He actually said, 'I want to work with you. It's such an honor,' Trump said reenacting his conversation with the Bessent. The president has been at war with Federal Reserve Chairman Powell , who has refused to bow to pressure to lower interest rates. Trump could also allow Powell to serve out his full term, which ends in May 2026, and select a replacement then.
Trump joked with CNBC anchor Becky Quick that she and her co-hosts would be better than Powell. 'You guys are better than most of the people who do it for a living,' he said. The president told CNBC that he has a list of four people he is considering to take Powell's place.
The final four include former Federal Reserve Board of Governors Kevin Warsh and Council of Economic Advisors member Kevin Hassett. Current Fed Governor Christopher Waller has also been floated as a potential future chairman. 'The two Kevins are doing well and I have two other people that are doing well,' Trump said on Tuesday during the call-in interview, naming two of the four he's considering.
While Trump has repeatedly threatened to fire Powell, it's not easy for a president to oust leaders at independent agencies. Trump says he has the authority to remove Powell and has cited disagreements over monetary policy – specifically the issue of interest rates.
But the Federal Reserve Act of 1913 prevents the president from firing members of the Federal Board of Governors, including the chairman, for any reason other than 'for cause.' This generally is interpreted as misconduct or neglect of duty. It does not appear to encompass policy disagreements like those Trump has repeatedly expressed.
Additionally, a Supreme Court decision in 1935 reinforced that a president cannot without cause fire top officials at independent agencies, which includes the Fed. Additionally, Trump has a more urgent Fed Board vacancy to fill after last week's resignation of Biden appointee Adriana Kugler.
In his attacks on Powell, Trump has even tried to allege fraud was afoot in a $2.5 billion Federal Reserve renovation project and this was possible justification for removal. During a tour of the Fed headquarters with Powell on July 24 , Trump implied mismanagement of funds or fraud, saying that the cost rose to $3.1 billion.
Powell immediately corrected Trump in front of the press, noting the figure he was referencing included a separate building that was renovated five years prior. Trump has not provided any concrete evidence of fraud.
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