See who's now on the list
Vice chairs Michelle Bowman and Philip Jefferson, as well as Dallas Fed president Lorie Logan, have been added to the list of potential successors to Federal Reserve chair Jerome Powell, Bloomberg News reported, citing two administration officials.
Bowman, Jefferson, and Logan join a list that already reportedly includes National Economic Council director Kevin Hassett, former Fed governor Kevin Warsh, current Fed governor Christopher Waller, St. Louis Fed president James Bullard, and economist Marc Sumerlin.
The expanded shortlist comes as US Treasury secretary Scott Bessent leads the search for a new central bank chief, with president Donald Trump expected to announce his choice this fall.
Bowman and Waller both dissented in July against the Federal Open Market Committee’s decision to keep rates unchanged, favoring a 0.25-percentage-point cut, Mint reported. Logan has taken a more hawkish stance, warning about the risks of easing monetary policy while inflation remains elevated. Jefferson has closely aligned with Powell on policy decisions.
Bessent’s criteria for the next chair
In an interview with Japan’s Nikkei, Bessent said the next chair should be someone “who can examine the whole organization” and who has the confidence of financial markets. He emphasized the need for a leader “very attuned to forward thinking, as opposed to relying on historical data.”
While acknowledging Trump’s public calls for rate cuts, Bessent said, “At the end of the day, the Fed is independent.”
Potential timing and political hurdles
Powell’s term as chair ends in May 2026, but he could remain on the Board of Governors until 2028 if he chooses. This could limit Trump’s ability to install an outsider unless that candidate is confirmed to a vacant board seat – such as the one expected to be filled in January by Stephen Miran, Trump’s nominee for the Board of Governors.
Any appointment, whether elevating an existing governor like Bowman or Jefferson or bringing in an outsider, would require Senate confirmation.
The Federal Reserve’s next policy meeting is set for Sept. 16–17 in Washington. The administration’s final decision on Powell’s successor is expected this fall.
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