President Trump said Tuesday that he plans to name a replacement for Federal Reserve Chairman Jerome Powell and that four prospects are under consideration for the position.
In an interview with CNBC’s “Squawk Box,” the president said he wants to replace Mr. Powell but also has a second opening at the central bank due to the surprise resignation of Fed Governor Adriana Kugle on Friday.
Mr. Trump said possibilities for the positions, including chair, are former Fed Governor Kevin Warsh, White House economic adviser Kevin Hassett and two others whom the president declined to name.
“There are numerous people who are qualified. I think it will be one of four people. I’m going to make a decision soon,” the president said.
“Both Kevins are very good, and there are a lot of other people who are very good,” he added.
Mr. Trump repeated his frequent criticism of Mr. Powell, whom he appointed during his first term. The president derided Mr. Powell as “highly political” and accused him of lowering interest rates ahead of the 2024 election to help Vice President Kamala Harris and now refuses to lower rates to hurt his presidency.
Last week, Mr. Powell raised the president’s ire again after the Fed decided to leave interest rates unchanged at 4.25% to 4.50%. Mr. Trump has called for lower interest rates, saying it will jump-start the economy.
“Someone who worked for me wanted him so bad. I did him a favor and put Powell in there, but he’s too late. That name will stick for him,” the president said.
In a surprise, Mr. Trump said Treasury Secretary Scott Bessent is not a candidate for Fed chairman. Some analysts had speculated that Mr. Bessent would be among Mr. Trump’s top choices to lead the central bank.
“I love Scott, but he wants to stay where he is. I’ll take him off the list,” Mr. Trump said.
The president has repeatedly floated the idea of replacing Mr. Powell, whose term does not expire until May 2026. Mr. Trump is somewhat hamstrung because he cannot fire Mr. Powell unless there is evidence of malfeasance or wrongdoing.
Mr. Warsh served as Fed governor from 2006 and 2011 and became former Fed Chairman Ben Bernanke’s liaison to Wall Street during the 2008 final crisis. He is also a known figure to Mr. Trump, who interviewed him for the chair before selecting Mr. Powell.
Mr. Warsh has criticized the Fed, suggesting it should look past increases in inflation due to tariffs because it would be a one-time increase in prices. He has also said the Fed has “lost its way” and needs “a reformer to fix” the central bank and rebuild its credibility.
Mr. Hassett, meanwhile, serves as Mr. Trump’s chief economic adviser and served in the first Trump administration. Earlier this year, he said he is focused on the 10-year Treasury yield rather than quick monetary policy changes through the Federal Reserve.
He has also called for the Fed to cut rates, echoing Mr. Trump’s call.