Payam Javan: President Donald Trump on Sept. 5 confirmed the three leading candidates he is considering to succeed Federal Reserve Chair Jerome Powell when his term ends in May next year. The shortlist includes former Fed board member Kevin Warsh, current Fed governor Christopher Waller, and National Economic Council Director Kevin Hassett. Trump initially weighed Treasury Secretary Scott Bessent as a fourth finalist, but Bessent publicly declined the role, saying he preferred to stay in his current position.

The announcement comes amid ongoing tensions between the White House and the Federal Reserve over interest rate policy. Trump has repeatedly pushed for more aggressive cuts to borrowing costs, while Powell has resisted, arguing the central bank should wait for clearer signs of economic direction. The Fed has kept its benchmark rate unchanged at 4.25 to 4.50 percent for five consecutive meetings, despite administration pressure.

Trump’s favored candidates all share a more dovish stance on monetary policy. Waller has already signaled support for earlier and deeper rate cuts, while Bessent, though not in the running, urged the Fed last month to slash rates by 150 basis points in stages. Inflation trends appear to bolster their case: headline consumer prices rose 2.7 percent in July, while core inflation edged up to 3.1 percent, both broadly in line with expectations.