With Federal Reserve Chairman Jerome Powell’s term set to expire in May 2026, President Donald Trump’s administration has launched an unusually public and sprawling search for his successor, casting a wide net that now includes nearly a dozen candidates. The process, which has drawn in current and former Fed officials, prominent economists, and market strategists, is shaping up to be one of the most consequential—and contentious—Fed chair selection cycles in recent memory, according to reporting from CNBC, Bloomberg, and The Fly.
At the heart of the debate is a growing consensus among the candidates—and within Trump’s economic inner circle—that the Federal Reserve’s benchmark interest rate is simply too high. Many on the shortlist are not just calling for modest tweaks but are advocating for aggressive and, in some cases, fundamental changes to the way America’s central bank operates.
Economist Marc Sumerlin, managing partner at Evenflow Macro and a former senior economist under President George W. Bush, made waves when he told CNBC, “We could easily do a 50-basis-point cut... without disrupting anything at all. So it seems like pretty much a no-brainer to me.” Sumerlin confirmed that he received a call from the White House last Wednesday notifying him of his inclusion on the candidate list. His stance is closely aligned with Trump’s own repeated calls for deep monetary easing, as the president has criticized Powell as a “loser” and “stupid” while advocating for rate cuts of up to three percentage points.
Wall Street veteran David Zervos, chief market strategist at Jefferies, has also publicly endorsed significant rate cuts. For three consecutive Fed meetings, Zervos has advocated half-percentage-point reductions in the federal funds rate. “I think there is a reasonable storyline, a very cogent storyline, that suggests monetary policy is restrictive,” Zervos told CNBC. He argued that the Fed needs “more market-savvy, more market-competent people” steering its decisions.
The Trump administration’s expanded shortlist now includes 11 candidates, with three previously unnamed contenders—Zervos, former Fed governor Larry Lindsey, and BlackRock’s chief investment officer for global fixed income Rick Rieder—joining the fray, according to two administration officials who spoke to CNBC. The process is being described as “deliberative,” with Treasury Secretary Scott Bessent set to interview all candidates before narrowing the list and presenting recommendations to the president. While Trump has not publicly set a timetable, he has indicated he may announce his pick “a little bit early,” possibly within the week following August 15, 2025.
The full list, as reported by Bloomberg and Mint, features current Fed officials Vice Chair for Supervision Michelle Bowman, Governor Chris Waller, and Vice Chair Philip Jefferson. Other contenders include National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, Dallas Fed President Lorie Logan, and former St. Louis Fed President James Bullard. Notably, both Bowman and Waller dissented in July against keeping rates unchanged, favoring a 0.25-percentage-point cut, while Logan has taken a more hawkish stance, warning against easing while inflation remains elevated. Jefferson, meanwhile, has closely aligned with Powell on policy decisions.
Several candidates have not shied away from criticizing the Fed’s recent direction. Former Governor Kevin Warsh has called for “regime change” at the central bank, while National Economic Council Director Kevin Hassett has bemoaned the lack of transparency behind the Federal Open Market Committee’s (FOMC) decisions. “There’s a real need for transparency and accountability,” Hassett told CNBC. Governor Michelle Bowman, for her part, emphasized the importance of listening to a wide range of views, including those of President Trump, to ensure the Fed remains responsive to the needs of the public.
Economist Marc Sumerlin described the Fed’s benchmark rate as “just too high,” a sentiment echoed by other candidates. Former Governor Larry Lindsey took aim at what he described as a lack of “intellectual diversity” within the FOMC, arguing this has led the committee to be “consistently wrong” in its decisions. Market strategists Zervos and Rick Rieder also support aggressive rate cuts, with Zervos arguing for a more market-oriented approach to monetary policy.
The issue of Fed independence has been a recurring theme. Sumerlin noted, “You have to be prepared to deal with criticism while doing the best job you can for the American people.” Hassett and others have stressed the need for the next chair to balance responsiveness with the institution’s longstanding independence. Bessent, the Treasury Secretary, told Japan’s Nikkei that the next chair should examine “the whole organization” and be “very attuned to forward thinking, as opposed to relying on historical data.” Despite Trump’s vocal advocacy for rate cuts, Bessent insisted, “the Fed is independent.”
Trump’s economic policies have also rippled through other sectors. According to The Fly, the administration is mulling a potential U.S. government stake in Intel to boost domestic manufacturing, while new tariffs on pharmaceutical imports are expected in the coming weeks. In the tech sector, Nvidia and AMD have agreed to pay 15% of their China-related chip sales revenue to the U.S. government as part of a deal to retain export licenses. Trump has also floated the idea of allowing Nvidia to sell a modified version of its latest AI chip in China, though Beijing has warned local firms against using certain U.S. processors.
Meanwhile, Trump praised tariffs as a boon for the U.S. economy, posting on Truth Social, “Trillions of Dollars are being taken in on Tariffs, which has been incredible for our Country, its Stock Market, its General Wealth, and just about everything else. It has been proven, that even at this late stage, Tariffs have not caused Inflation, or any other problems for Country, other than massive amounts of CASH pouring into our Treasury’s coffers.” He also took a swipe at Goldman Sachs’ David Solomon for what he characterized as consistently incorrect market predictions.
Financial markets are already reacting to the prospect of a new Fed chair and a more dovish monetary policy. Treasury Secretary Bessent suggested the Fed should lower rates by 150 to 175 basis points, supporting expectations of rate cuts in September, October, and December 2025. The implied September contract is now pricing in a 26.5 basis point cut, with further reductions expected later in the year.
Speculation is also swirling around the future of Fannie Mae and Freddie Mac. Trump posted a photo on social media of an alleged initial public offering of a company called “The Great American Mortgage Corporation,” fueling rumors of an IPO for the government-sponsored enterprises. However, analysts at Keefe Bruyette remain skeptical that such an offering can be completed by year-end, citing capital and return on equity concerns.
As the Trump administration weighs its options, the stakes for the Federal Reserve—and the U.S. economy—could not be higher. The next chair will inherit an institution at a crossroads, with inflation, economic growth, and financial stability all hanging in the balance. The coming weeks promise to be pivotal, as the White House prepares to make a decision that will shape the trajectory of American monetary policy for years to come.
