US President Donald Trump recently nominated White House economist Stephen Miran to temporarily fill a vacant seat on the Federal Reserve’s Board of Governors. However, his next choice for the top role at the Fed will be far more consequential. Plans are already taking shape for selecting the next Fed chair.
Trump’s decision to nominate Miran comes as the administration continues to search for an even more powerful role: Fed chair. Current chair Jerome Powell has long drawn Trump’s ire due to his refusal to lower interest rates, and his term expires in May. The president is leaving no stone unturned in his search for a replacement.
Trump has narrowed down his list of potential picks, but it’s still unclear who will take the top spot. Christopher Waller, a current Fed governor, has gained ground with Trump’s inner circle after recently dissenting on a policy move. Two Republicans, Kevin Warsh and Kevin Hassett, remain on the shortlist.
Waller’s unexpected dissent may have boosted his chances for the role. As a key messenger on the Fed’s policy moves, Waller’s speeches were closely watched by investors in recent years. However, he has chosen to set himself apart from the rest of the rate-setting committee lately.
In contrast, Warsh and Hassett are both seen as strong contenders due to their loyalty to Trump and their support for his economic agenda. Both have defended Trump’s tariffs and argued that the Fed should remain independent.
The search for the next Fed chair is likely to be a contentious process. With Waller’s dissent and Warsh’s defense of Trump’s policies, it will be interesting to see how the market reacts to the final choice.
Source: https://edition.cnn.com/2025/08/09/business/federal-reserve-chair-trump