Trump Narrows Federal Reserve Chair Search to Four – Treasury Secretary Out of the Running

2025-08-05
Trump Narrows Federal Reserve Chair Search to Four – Treasury Secretary Out of the Running
The Associated Press - Business News

WASHINGTON (AP) – The hunt for the next leader of the Federal Reserve is intensifying as President Donald Trump has reportedly narrowed his list of potential candidates to just four individuals. This significant development comes as the White House considers a successor to current Chairman Jerome Powell, a decision with far-reaching implications for the US economy.

Notably, Treasury Secretary Steven Mnuchin has been excluded from consideration, a surprising turn of events given the close working relationship between Trump and Mnuchin. While the administration hasn't explicitly stated the reason for Mnuchin's exclusion, speculation suggests it may be linked to differing views on monetary policy and the appropriate level of Federal Reserve independence.

Who are the Contenders?

The four remaining candidates vying for the coveted position are:

  • Stephen Moore: A conservative economist and former advisor to Trump, Moore has been a vocal critic of the Federal Reserve's policies and has advocated for lower interest rates. His appointment would likely signal a more aggressive shift towards Trump's economic agenda.
  • Herman Cain: The former presidential candidate and businessman has been a long-time supporter of Trump and has also expressed skepticism about the Federal Reserve's independence. His candidacy has drawn mixed reactions, with some questioning his qualifications for the role.
  • Christopher Waller: Currently a Federal Reserve Board governor, Waller is considered a more mainstream candidate with a traditional understanding of monetary policy. His experience within the Fed could offer a smoother transition.
  • Judith Shelton: A conservative economist and trade advisor, Shelton has advocated for reforms to the Federal Reserve's structure and governance. Her appointment could lead to significant changes in the way the Fed operates.

Why This Matters

The selection of the next Federal Reserve chair is a pivotal moment for the US economy. The chair plays a crucial role in setting monetary policy, influencing interest rates, and managing inflation. Trump's choice will shape the direction of the economy for years to come, impacting everything from consumer spending and business investment to job growth and financial markets.

Political Considerations

The appointment process is inherently political, and Trump's selection is likely to be influenced by his own priorities and political considerations. He has repeatedly criticized Powell's handling of monetary policy, particularly the Fed's decision to raise interest rates in 2018 and 2019. Trump has expressed a desire for a chair who is more aligned with his economic views and more willing to support his policies.

Looking Ahead

The White House is expected to announce its decision in the coming weeks. The Senate will then hold confirmation hearings before voting on the nominee. The outcome remains uncertain, but the selection of the next Federal Reserve chair will undoubtedly have a profound impact on the US economy and financial markets.

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