Economist Marc Summerlin, one of nearly a dozen candidates for Federal Reserve chairman, expressed interest in the position on Thursday and believes a significant interest rate cut is appropriate. Summerlin, a former senior economist under President George W. Bush, told the media that lowering the Fed's key interest rate now is an easy decision. The current yield structure, a slack labor market, and stable inflation "tell us we can definitely do a 50 basis point cut...it's not going to be disruptive at all, and it's almost a no-brainer to me," he said.



Federal Reserve policymakers are increasingly concerned about cooling labor market trends, with August 2025 employment data suggesting weakening market momentum. Fed watchers are debating whether the central bank will opt for a larger-than-expected 50 basis point rate cut at its September meeting, rather than the more widely expected 25 basis point reduction.

Christopher Waller, another potential candidate for the Fed chairmanship and current Fed Governor, also said the policy focus has shifted to employment, saying the "balance of risks has shifted toward the employment side of our dual mandate," which could provide a case for more aggressive rate cuts.

In the race to succeed current Chair Jerome Powell (whose term ends in May 2026), Summerlin's stance on interest rates aligns, at least directionally, with President Trump's. Trump has repeatedly urged the Federal Reserve to ease monetary policy, advocating for rate cuts of up to 3 percentage points, but the Federal Open Market Committee (FOMC), led by Powell, has kept the benchmark rate unchanged since its last cut in December 2024. Reuters reports that Trump continued to pressure Powell to cut rates in 2025, continuing the criticism he leveled when he promoted Powell to chair during his first term.

Regarding the nomination race, Summerlin, now managing partner at Evenflow Macro, confirmed receiving a call from the White House last week. He mentioned his close friendship with Treasury Secretary Scott Besant, who is leading the search for the next Fed chair, and said the two have "discussed monetary policy every week for the past 12 years."

Reuters confirmed that Bessant is leading a broad search for Powell's successor, and that Summerlin is among the candidates, including St. Louis Federal Reserve Bank President James Bullard, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and current Fed Governor Christopher Waller. The Wall Street Journal initially reported that the list of candidates was about 10, and Trump later narrowed it to four, but multiple sources confirmed that Summerlin remains on the list.

"I got a call last Wednesday saying there would be a list and I would be on it. That's all I know at this point," Summerlin said. "I'm waiting for further guidance on how to proceed."

Summerlin said he's interested in the nomination, provided certain conditions are met. "I think if it's for the Fed chair position, it's a mission that's incredibly important to the world, and you have to be willing to take it on," he said. "I've never met the president in person. It depends on whether we can come to an agreement."

Summerlin stressed the importance of the Fed’s independence, a principle that has been called into question by Trump’s public criticism of Powell and other policymakers. Trump called Powell a “loser” and “stupid” and criticized the FOMC for being too complacent.

"You have to know that every day when you walk into office you're going to do your best for the American people and be prepared to face criticism," Summerlin said. "Ideally, you want to be aligned with all parties when you walk in. Alignment is a two-way street and it's going to be part of the process."

Besides Summerlin, other candidates include current Fed Governors Michelle Bowman and Christopher Waller, National Economic Council Director Kevin Hassett, and former Governor Kevin Warsh, among about a half-dozen others. Hassett, Warsh, and Waller have all expressed support for lower interest rates, consistent with Trump's preference for chairmen who support monetary easing. However, Summerlin's recent monetary policy views, beyond supporting a 50 basis point rate cut, remain unclear.

The Fed's recent focus on labor market slack, with the unemployment rate rising to 4.3% in July 2025, bolsters the case for a rate cut, echoing Summerlin's comments.

As the Fed prepares for its September 2025 meeting, market expectations are shifting toward possible rate cuts, with some traders betting on a 50 basis point cut due to labor market concerns. However, the Fed's December 2024 forecast of only two 25 basis point rate cuts in 2025 showed a more cautious outlook, which could make Summerlin's aggressive stance challenging as chairman.