Trump will finalize the new head of the Federal Reserve this week! Four major candidates emerge
2025-08-06 10:51:26
This week, President Trump will make two major personnel decisions: filling a vacant seat on the Federal Reserve Board and selecting candidates for the next Fed Chair. These moves will not only rattle global financial markets but also potentially reshape the direction of US monetary policy for years to come. The sudden emergence of self-nominated candidates, the dramatic departure of officials, and Trump's public questioning of economic data will make this personnel maneuvering even more intriguing.
Last week, Federal Reserve Board Governor Kugler suddenly announced that he would resign on August 9 to return to teach at Georgetown University. This decision surprised Trump because it meant he could quickly nominate a new board member, who would likely be a potential candidate for the future Federal Reserve Chairman.
Trump has made it clear that he will name Kugler's successor by the end of the week. The new governor will initially serve out the remainder of Kugler's term, but it's widely believed that Trump will use this opportunity to pave the way for a new chairmanship following Powell's departure next May. If the new governor performs well, he or she could be nominated for a full 14-year term or even directly run for the Fed Chair position.
It's worth noting that Trump's nominee for the Fed's new board member will have to undergo a rigorous Senate confirmation process. First, the new board member will complete the remainder of Kugler's term and, early next year, will face another Senate vote to complete a full 14-year term. Furthermore, if Trump considers this nominee as a future Fed Chair, they will need to undergo an additional confirmation by the Senate's chairman. This complex process will undoubtedly add a layer of political maneuvering to Trump's selection process.
Trump revealed that he has narrowed his list of potential Federal Reserve Chair candidates to four. Two of them are the well-known "Kevin duo"—former White House economic advisor Kevin Hassett and former Federal Reserve Governor Kevin Warsh. The identities of the other two have not been made public, but there is speculation that current Federal Reserve Governor Waller may be among them.
Notably, Treasury Secretary Jeff Bessant was left off the list. Trump explained that Bessant preferred to remain in his current position. This statement quelled earlier speculation about a Treasury Secretary transition to become Federal Reserve Chair, but it also raised new questions: Who are the other two mystery candidates? Is Trump considering even more surprising options?
In a sudden twist, sources familiar with the matter revealed that James Fishback, CEO of Azoria Investments and a former advisor to the Department of Government Efficiency, has contacted Trump and offered himself as a Federal Reserve governor. Fishback, a former employee of the George W. Bush administration, has close ties to the Republican Party. While the White House has yet to comment on this, this move suggests Trump's pool of candidates may be broader than initially thought.
On the same day that Kugler left, Trump also fired BLS Commissioner McEntuff and accused the bureau of manipulating employment data without any evidence. This move caused an uproar, and economists warned that Trump's interference in independent agencies could seriously undermine the credibility of US economic data.
Michael Strain, an expert at the American Enterprise Institute, bluntly stated that if Trump appoints another "confidant" to run the Federal Reserve, market concerns about policy independence will be magnified a thousandfold. "The combination of panic over data falsification and the politicization of monetary policy would be disastrous."
Trump's swift decision-making on the Federal Reserve's selections demonstrates his intense control over the core institution of US economic policy. From Kugler's unexpected departure, to the narrowing of the candidate list for chairman, to James Fishback's unexpected self-nomination, every detail has rattled the nerves of the market and the public. However, with the economic data storm brewing, Trump's choices not only affect the future of the Fed but also potentially impact global confidence in US economic governance. At this critical juncture, whether Trump can strike a balance between political considerations and economic expertise will be crucial in determining the Fed's future direction. Both the appointment of new board members and the final selection of the chairman will continue to generate heated debate in the coming months, worthy of close attention from global investors and policy observers.
1. Federal Reserve Board vacancy: Trump's "surprise"
Last week, Federal Reserve Board Governor Kugler suddenly announced that he would resign on August 9 to return to teach at Georgetown University. This decision surprised Trump because it meant he could quickly nominate a new board member, who would likely be a potential candidate for the future Federal Reserve Chairman.
Trump has made it clear that he will name Kugler's successor by the end of the week. The new governor will initially serve out the remainder of Kugler's term, but it's widely believed that Trump will use this opportunity to pave the way for a new chairmanship following Powell's departure next May. If the new governor performs well, he or she could be nominated for a full 14-year term or even directly run for the Fed Chair position.
It's worth noting that Trump's nominee for the Fed's new board member will have to undergo a rigorous Senate confirmation process. First, the new board member will complete the remainder of Kugler's term and, early next year, will face another Senate vote to complete a full 14-year term. Furthermore, if Trump considers this nominee as a future Fed Chair, they will need to undergo an additional confirmation by the Senate's chairman. This complex process will undoubtedly add a layer of political maneuvering to Trump's selection process.
2. The race for Federal Reserve chairman: Four major candidates emerge
Trump revealed that he has narrowed his list of potential Federal Reserve Chair candidates to four. Two of them are the well-known "Kevin duo"—former White House economic advisor Kevin Hassett and former Federal Reserve Governor Kevin Warsh. The identities of the other two have not been made public, but there is speculation that current Federal Reserve Governor Waller may be among them.
Notably, Treasury Secretary Jeff Bessant was left off the list. Trump explained that Bessant preferred to remain in his current position. This statement quelled earlier speculation about a Treasury Secretary transition to become Federal Reserve Chair, but it also raised new questions: Who are the other two mystery candidates? Is Trump considering even more surprising options?
3. Dark Horse Self-Recommendation: James Fishback's Self-Recommendation
In a sudden twist, sources familiar with the matter revealed that James Fishback, CEO of Azoria Investments and a former advisor to the Department of Government Efficiency, has contacted Trump and offered himself as a Federal Reserve governor. Fishback, a former employee of the George W. Bush administration, has close ties to the Republican Party. While the White House has yet to comment on this, this move suggests Trump's pool of candidates may be broader than initially thought.
4. A Deeper Crisis: The Storm of Data Trust and the Struggle for Independence
On the same day that Kugler left, Trump also fired BLS Commissioner McEntuff and accused the bureau of manipulating employment data without any evidence. This move caused an uproar, and economists warned that Trump's interference in independent agencies could seriously undermine the credibility of US economic data.
Michael Strain, an expert at the American Enterprise Institute, bluntly stated that if Trump appoints another "confidant" to run the Federal Reserve, market concerns about policy independence will be magnified a thousandfold. "The combination of panic over data falsification and the politicization of monetary policy would be disastrous."
Summary: Trump's layout and the future of the Federal Reserve
Trump's swift decision-making on the Federal Reserve's selections demonstrates his intense control over the core institution of US economic policy. From Kugler's unexpected departure, to the narrowing of the candidate list for chairman, to James Fishback's unexpected self-nomination, every detail has rattled the nerves of the market and the public. However, with the economic data storm brewing, Trump's choices not only affect the future of the Fed but also potentially impact global confidence in US economic governance. At this critical juncture, whether Trump can strike a balance between political considerations and economic expertise will be crucial in determining the Fed's future direction. Both the appointment of new board members and the final selection of the chairman will continue to generate heated debate in the coming months, worthy of close attention from global investors and policy observers.
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