The ‘Two Kevins’ and Other Contenders Trump Could Tap to Replace Jerome Powell

President Donald Trump's shortlist to lead the Federal Reserve includes National Economic Council Director Kevin Hassett, Fed Gov. Christopher Waller, and former Fed Gov. Kevin Warsh Reuters

President Donald Trump appears ready to move on from Federal Reserve Chair Jerome Powell, a figure he has clashed with repeatedly during his time in office.

After years of criticism and even an awkward face-to-face meeting Powell has not shifted his “wait-and-see” stance on monetary policy or moved to cut interest rates as Trump has urged. With Powell’s term nearing its end, Trump seems to be counting down the days until he can name a successor.

Earlier this week, the president revealed that he has a shortlist of possible replacements, highlighting “the Two Kevins” Kevin Hassett, former director of the National Economic Council, and Kevin Warsh, a former member of the Federal Reserve Board of Governors.

By week’s end, however, prediction markets were swinging wildly on reports that other names might be gaining traction.

The Current Leading Contenders

Christopher Waller

Prediction markets favor Fed Gov. Christopher Waller as the replacement for Fed Gov. Jerome Powell. Patrick Semansky/AP

Federal Reserve Governor Christopher Waller initially seemed to lose momentum after Trump’s public praise for “the Two Kevins” on August 5. But Bloomberg News later reported that Waller was emerging as Trump’s favored pick, sending his odds soaring on betting markets.

A longtime regional Fed official, Waller was nominated to the central bank in 2019 alongside Judy Shelton, a Trump campaign adviser and Fed critic. Shelton’s controversial nomination fight spilled over onto Waller’s confirmation, which in December 2020 passed by a razor-thin 48-47 vote the narrowest margin for a Fed governor since 1980.

In July, Waller joined Governor Michelle Bowman, another Trump appointee, in dissenting against the Fed’s decision not to cut interest rates marking the first dual dissent in over 30 years.

Kevin Hassett

Jim Watson/AFP via Getty Images

Hassett has advised a string of Republican presidential candidates, including George W. Bush, John McCain, and Mitt Romney. During Trump’s first term, he served as chairman of the Council of Economic Advisors and later returned to the White House during the COVID-19 pandemic.

He faced sharp criticism for a projection that coronavirus deaths in the US would fall to zero by May 15, 2020 a forecast that proved far off the mark.

Hassett is also known for coauthoring the 1999 book Dow 36,000, which predicted a rapid rise in the stock market index. The Dow ultimately took more than two decades to hit that milestone.

Kevin Warsh

Former Fed Gov. Kevin Warsh speaks during an event at the Hoover Institution Ann Saphir/Reuters

Warsh was on Trump’s radar for the Fed chair role in 2017 before Powell ultimately got the nomination. His early career was spent at Morgan Stanley in mergers and acquisitions before joining the George W. Bush administration as an economic adviser. Bush later nominated him to the Fed in 2006.

During the 2008 financial crisis, Warsh acted as the Fed’s chief liaison to Wall Street, helping coordinate the central bank’s response. Since leaving in 2011, he has been a vocal critic of Powell’s leadership and monetary policy decisions, calling for “regime change” at the Fed.

“The inflation miss has stuck with them,” Warsh told CNBC in July. “That’s one reason why the president is right to be pushing for change in the conduct of policy.”

James Bullard

Former St. Louis Federal Reserve Bank President James Bullard is a late entry to Trump's list of contenders. Edgar Su/Reuters

Jim Bullard led the Federal Reserve Bank of St. Louis for 15 years before becoming dean of Purdue University’s business school. During his tenure on the Fed’s policy-setting committee, Bullard was often seen as a bellwether for the central bank’s direction.

The Wall Street Journal recently reported that Bullard has joined Trump’s extended shortlist of about 10 potential candidates. Notably, he was the one who recommended Waller for his eventual Fed nomination in 2019. Bullard has previously expressed interest in becoming Fed chair if a vacancy opened.

Marc Sumerlin

Marc Sumerlin was a former economic adviser to President George W. Bush. c-span

Sumerlin served as an economic adviser to President George W. Bush and rose to deputy director of the National Economic Council. He later founded a consulting firm in 2013, which has brought him into contact with current Treasury Secretary Scott Bessent.

According to the Journal, Bessent once floated as a possible Fed candidate himself is now playing a key role in vetting and interviewing the contenders.