US President Donald Trump has signaled his intention to replace Federal Reserve Chair Jerome Powell once his term ends in May 2026, saying he has “three or four” candidates in mind to lead the central bank.
“I know within three or four people,” Trump told reporters on Wednesday during a press conference in The Hague, where he is attending the NATO summit.
“I mean he goes out pretty soon, fortunately, because I think he’s terrible.”
The president did not disclose any names from the shortlist or specify when he expects to make a final decision.
Powell, who began his second term as Fed chair in 2022, has come under mounting criticism from Trump for maintaining high interest rates in the face of what the president sees as economic headwinds tied to his administration’s policy agenda.
Possible people who could replace Powell
The shortlist for potential Federal Reserve chair nominees reportedly includes former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, National Economic Council Director Kevin Hassett, and Treasury Secretary Scott Bessent.
Although Trump refrained from naming potential successors, some of his allies have reportedly lobbied for Treasury Secretary Scott Bessent to be considered for the role, as per some media reports.
Another figure floated in recent months is former Fed governor Kevin Warsh, whom Trump has previously described as “very highly thought of.”
Warsh was considered for the Fed chair position during Trump’s first term before the role ultimately went to Powell.
The Trump-Powell feud
Trump’s latest remarks underscore a continued pressure campaign against Powell and the broader Federal Reserve.
The president repeated his demand that the Fed cut rates by 2.5 percentage points, far more than what current policymakers have indicated.
“He’s a very stupid person,” Trump said of Powell, blaming him for maintaining elevated borrowing costs and, in turn, keeping the US government’s debt servicing burden high.
In its latest meeting, the Federal Open Market Committee held interest rates steady in the 4.25% to 4.5% range and signalled that it expects to deliver a half-percentage-point cut by the end of 2025, contingent on economic data.
That position falls far short of Trump’s stated goal, as the president continues to argue that more aggressive action is needed to support growth amid uncertainty over his own trade and tariff policies.
Powell has become a focal point in broader economic debates surrounding the Trump administration’s evolving trade policy, particularly the new round of sweeping tariffs on US trading partners.
On Tuesday, Powell told lawmakers during a House Financial Services Committee hearing that the Fed would remain “data dependent” and avoid premature policy moves until the full inflationary impact of Trump’s tariffs becomes clearer.
The president, meanwhile, is under pressure to finalize trade deals before a July 9 deadline, which could potentially reduce or delay the implementation of the higher duties.
Trump has a long history of publicly criticizing Powell.
Even during his first term, he questioned the Fed chair’s intelligence and policy decisions, even going so far as to call him an “enemy” of the United States in 2019.
More recently, Trump revived the nickname “Too Late” for Powell and floated the idea of firing him—a move that legal scholars say would face significant constraints unless done with cause.
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