Trump Wants a Dovish Fed Chair - Who's on His List?

Donald Trump has been back in the White House for months, and one priority is already dominating the agenda: slashing interest rates.

On June 27, Trump made it crystal clear: he will only appoint a Fed chair who supports bringing rates down to around 1%. He called Jerome Powell "stupid" and said he should resign.

Powell's term ends in May 2026. But Trump isn't waiting.

Reports say he could name a replacement this fall.

Markets are watching closely. And so are the candidates.

Here are the current front-runners for the position:

Kevin Warsh. Former Fed governor (2006-2011) with deep ties to Wall Street and prior GOP administrations. Known for his market instincts and central banking credibility. Trump nearly picked him last time. He's viewed as a serious, steady hand - one who could pivot dovish without rattling institutions.

Kevin Hassett. Former Chair of Trump's Council of Economic Advisers. An outspoken critic of current Fed policy and a longtime advocate of growth-focused stimulus. While not a central banker, his academic background and media presence make him a familiar face - and a fiercely loyal Trump ally.

Scott Bessent. Now serving as Trump's Treasury Secretary. Former CIO of Soros Fund Management. Deep understanding of global markets, investor behavior, and political messaging. Seen as someone who could seamlessly coordinate monetary and fiscal policy while staying in sync with Trump's broader economic goals.

Christopher Waller. Current Fed Governor with a pragmatic stance and academic credentials. Has shown openness to rate cuts and could offer a smooth, internal transition. Promoting him could calm market nerves while still moving in a Trump-aligned direction.

Here are some other possible contenders:

David Malpass. Former President of the World Bank and a longtime economic advisor in Republican circles. Served under Trump at the Treasury. Known for his international focus and skepticism toward global institutions. Lacks direct central banking experience but fits Trump's ideological mold.

Randal Quarles. Former Fed Vice Chair for Supervision and a key architect of post-crisis regulatory rollback under Trump. Deep central bank and private sector experience. Not as vocal recently, but remains a qualified, low-drama option.

Stephen Moore and Judy Shelton. Both are ideologically aligned with Trump and have a history of controversial views. Moore was previously withdrawn from Fed nomination over past comments; Shelton's support for the gold standard tanked her Senate bid. Either pick would face serious confirmation challenges but could rally Trump's base.

Investors aren't waiting for a nominee.

The dollar is down. Stocks are up. Bond yields are falling.

Traders are now betting on five rate cuts by late 2026.

Still, inflation and tariffs may slow that down.

What Comes Next?

Expect an announcement this fall.

Whoever gets the job will be under one directive: cut rates. Quickly.

The next Fed chair won't just steer monetary policy - they'll help shape Trump's legacy.

And markets know it.

Filed under: General Knowledge