The list of candidates for the Federal Reserve chairmanship retains getting longer. And longer. And looooonger.
Be faster to guess who *is not* on the listing.
— Man LeBas (@lebas_janney) August 13, 2025
Nonetheless, given the doubtless big penalties of the selection, FT Alphaville although it was price going by means of all of them and grading the candidates on quite a lot of our extremely rigorous and proprietary quantamental metrics.
A fast reminder of the Fed’s construction: The US central financial institution is run by a Board of Governors in DC and the heads of a dozen regional Fed banks in locations like Boston, St Louis and Cleveland. Governors are nominated for 14-year phrases, and from them the US president nominates one for a four-year time period as chair.
Jay Powell’s time period as Fed chair ends in Might 2026 and it’s fairly protected to imagine it received’t be renewed, given President Donald Trump lambasting him as a “cussed MORON”, a “numbskull”, a “catastrophe”, and a “dummy”.
Nonetheless, that is most likely Trump’s solely shot at reshaping the central financial institution. The president has no energy to decide on the regional Fed presidents — they’re chosen by an area board of made up of distinguished businesspeople from their respective areas — and there are solely two governorships expiring beneath the present Trump presidency: the one just lately vacated by Adriana Kugler and now taken temporarily by Stephen Miran, and Powell’s personal governorship, which doesn’t finish till January 2028.
Because of this, even deciding on a headbanger as Fed chair received’t essentially imply a Trumpist takeover of the US central financial institution. In actual fact, Alphaville wouldn’t be stunned if Powell decides to remain on as a Fed governor even after his time period as chair ends subsequent Might. In that case he might perform as a kind of “shadow chair” for the mainstream members of the FOMC even when another person formally holds the title.
Alternatively, it most likely isn’t sensible to be too sanguine over the hazards. As PGIM Fastened Revenue’s Gregory Peters told FTAV earlier this summer season:
. . . Buyers are putting confidence within the construction of the Fed. That the FOMC will maintain collectively. So even in case you have somebody put in who desires to chop rates of interest to zero, there’s a committee course of that may act as a examine and stability.
I imagine that. I hope that’s true. However one of many classes we’ve learnt over the previous six months is that you could’t take an excessive amount of consolation in institutional norms. Simply because one thing hasn’t been completed earlier than, doesn’t imply they received’t attempt to do it now. So it does fear me.
Anyway, listed below are all of the names we’ve seen or heard floated, and ranked by their dovishness, their Trumpism and the probability of freaking out markets, going from 1 to five (ish). As you possibly can see, we’re firmly on this planet of least-bad choices right here.
Scott Bessent
Has apparently taken himself out of the operating, however Trump likes a twist, and we suspect Bessent sees a possible Fed chair when trying within the mirror. What higher technique to snag the job your self than by being in charge of the search committee?
Plus, with the dim probabilities for a grandiose Bretton Woods-style “Mar-a-Lago Accord” — which Bessent has stated he’d “like to be a part of” — and the same old Trump White Home chaos he may fancy a job change sooner fairly than later.
Bessent would presumably be extremely dovish and Trump-aligned as Fed chair, however is mostly seen as one of many extra competent and sober Trump officers. There are definitely worse candidates on this listing.
Alternatively, Bessent’s criticisms of the Fed have been fairly shrill and norm-defying, and he has stated that he’s “aware” of how Henry Morgenthau Jr served as each Treasury secretary and Fed chair within the Thirties. If one thing like that’s tried then the market response could be . . . fascinating.
Dovishness: 🕊️🕊️🕊️🕊️
Trumpism: 🍊🍊🍊🍊
Freakout potential: 🤮🤮 (🤮🤮🤮🤮🤮 if the Fed and Treasury jobs are mixed)
Chris Waller
Waller is a sitting Fed governor since 2020, a former head of analysis on the St Louis Fed, a financial coverage specialist and a Trump 1.0 appointee, and is now the main candidate for the Fed chairmanship.
His dovish shift has definitely helped his trigger within the White Home.
The beautiful clearly cynical bounce from advocating for “more caution” on fee cuts within the autumn of 2024 to instantly being the FOMC’s leading dove might need dinged his credibility, however Waller has been in a position to sofa the reversal in semi-credible macroeconomic phrases.
He’s simply the favoured candidate of most traders, given his chops. And regardless of his overt keenness on the job, Waller would most likely be welcomed by a lot of the Fed’s staffers as properly, given a number of the different candidates on the White Home’s listing.
Dovishness: 🕊️🕊️🕊️
Trumpism: 🍊
Freakout potential: 🤮
David Zervos
Sure. Really. In actual fact, the chief market strategist at Jefferies is at pixel time the 4th favourite on Kalshi, the betting market.
Zervos would unquestionably convey extra aptitude and hair to the Fed chairmanship, and he does have some pedigree as a former Fed economist and hedge fund supervisor on the likes of Brevan Howard. He’s additionally been getting near the Magasphere by means of his friendship with Kellyanne Conway, which might be a giant assist if he desires the large job.
However this appears like a type of rumours floated about simply to generate consideration, and Trump appears to desire a Fed chair who really seems to be like a Fed chair.
Dovishness: 🕊️🕊️🕊️🕊️
Trumpism: 🍊🍊🍊
Freakout potential: 🤮🤮🤮🤮
Kevin Hassett
Hassett was as soon as principally well-known for co-writing the bestselling 1999 e-book Dow 36,000 — as soon as dubbed “perhaps the most spectacularly wrong investing book ever” — however is now primarily often called Trump’s premier economist cheerleader.
On paper he looks as if a reputable candidate for Fed chair. Hassett has a PhD in economics from the College of Pennsylvania, stints on the Fed’s analysis division and the Treasury beneath the primary Bush and Clinton administrations, adopted by a protracted residency on the American Enterprise Institute.
He then served as chair of the Council of Financial Advisors within the first Trump presidency.
Nonetheless, the growing extremity of his Trump sycophancy has unnerved quite a lot of traders and analysts, even because it has made him one of many frontrunners for the gig as chair of the US central financial institution. His modelling skills need work though.
Dovishness: 🕊️🕊️🕊️🕊️🕊️
Trumpism: 🍊🍊🍊🍊🍊
Freakout potential: 🤮🤮🤮
Kevin Warsh
Warsh has been a frontrunner for Trump’s Fed chair for nearly a decade, having narrowly misplaced out to Jay Powell again in 2017.
As soon as once more, the CV seems to be believable. Warsh briefly labored as an funding banker at Morgan Stanley, however then served on the Nationwide Financial Council beneath George W Bush, who then nominated him for a Fed governorship in 2006 regardless of simply being 35 years outdated on the time.
Through the world monetary disaster he proved an ready sidekick to Fed chair Ben Bernanke, who stated in his memoirs that Warsh was one in every of his “most frequent companions on the countless convention calls by means of which we formed our crisis-fighting technique”.
Nonetheless, many traders and economists who Alphaville has spoken to are unimpressed by his candidacy. They are saying the fact is that he’s a light-weight, instinctive hawk who has desperately tried to reinvent himself as a dovish Trump devotee to win a job that on pure advantage he most likely shouldn’t be anyplace close to.
However he’s married to the daughter of Trump megadonor and fellow Greenland fan Ronald Lauder, and he’s acquired that central casting look that the president is keen on, so clearly he’s one of many main contenders.
Dovishness: 🕊️ / 🕊️🕊️🕊️ (as a result of, actually, who is aware of for positive)
Trumpism: 🍊🍊🍊
Freakout potential: 🤮🤮
Stephen Miran
The chatter is that he’s only a momentary placement on the board — holding a seat heat in case Trump decides he desires an outsider and wishes a governor slot to get them in — nevertheless it appears bizarre to low cost him.
In any case, Miran’s Trumpist bona fines are impeccable, and his Harvard PhD in economics provides him the of mental credentials wanted (although Harvard PhDs are clearly not the marker of intellect that they as soon as have been).
We covered what a Miran Fed might look like earlier this week. Suffice to say he most likely isn’t the favorite candidate of traders. Miran may not be capable of persuade his FOMC colleagues to slash charges instantly, however his longer-term imaginative and prescient of a extra supine accountable Fed is greater than a bit unnerving.
Dovishness: 🕊️🕊️🕊️🕊️🕊️
Trumpism: 🍊🍊🍊🍊🍊
Freakout potential: 🤮🤮🤮🤮🤮
Miki Bowman
Waller is mostly seen because the main “inside” candidate, however Bowman has additionally been making noticeably dovish coos recently meaning she could be within the combine. Or no less than may be very eager to be in it.
A speech to the Kansas Bankers Affiliation final week screamed “how do you say you wish to be Trump’s Fed chair with out really saying you wish to be Trump’s Fed chair”. She additionally joined Waller in voting for an interest rate cut on the July FOMC assembly.
Nonetheless, regardless of being a Trump appointee from 2018 and being elevated to vice-chair for banking supervision by the brand new Trump administration earlier this yr, Bowman appears a protracted shot.
If the president decides to go together with a semi-normal, markets-soothing candidate there are stronger financial coverage sorts on the listing, and if he desires an “personal the libs” headbanger then a gentle former Kansas banking commissioner appears a nasty match.
Dovishness: 🕊️🕊️🕊️
Trumpism: 🍊🍊
Freakout potential: 🤮🤮
Jim Bullard
One of the wild cards thrown into the mix recently. Bullard would include impeccable Fed chair credentials, as the previous head of the St Louis Fed between 2008 and 2023 and a repute as a smart, bellwether FOMC voter.
He’s now the dean of Purdue College’s enterprise faculty, however positively appears eager on the gig. Whereas stressing the significance of an unbiased Fed, the greenback’s reserve standing and low and secure inflation on a CNBC interview yesterday, Bullard additionally stated that he didn’t suppose tariffs could be inflationary and argued that the Fed might, ought to and can minimize rates of interest.
If Bessent referred to as all of the photographs we might simply see Bullard as a frontrunner, however there’s just one particular person within the White Home who really issues, and Bullard appears an odd match for a Trump Fed chair.
Dovishness: 🕊️🕊️
Trumpism: 🍊
Freakout potential: 🤮
Marc Sumerlin
One other old-school Republican economist who has instantly appeared out of nowhere to be on the longlist of candidates.
Alphaville has to confess that we’re not accustomed to his work, however Wikipedia informs us that he was deputy director of George W Bush’s Nationwide Financial Council and has since 2013 run his personal financial consulting agency (which the WSJ says has labored with Bessent previously).
Intriguingly, it seems he was tapped as much as be a Fed governor by the primary Trump administration, however declined to place his identify ahead. His views are onerous to know, so the beneath evaluation is predicated completely on vibes.
Dovishness: 🕊️🕊️
Trumpism: 🍊
Freakout potential: 🤮🤮 (although actually who is aware of)
Judy Shelton
We’re together with Shelton as a result of she makes the highest 10 possible candidates on Kalshi, with an implied 3 per cent likelihood of getting the nod on the time of writing.
We actually actually hope that’s far too excessive, however that is 2025, so ¯_ (ツ)_/¯
To provide a way of Shelton’s vibe, it was reportedly being paired along with her as Fed governor nominees that brought on Sumerlin to refuse his nomination in 2019.
She’s principally often called a goldbug with . . . unorthodox views on financial coverage basically and the Fed specifically. She was an uber-hawk till ca 2am ET on November 9, 2016, when she underwent a magical metamorphosis into an uber-dove. Her candidacy for Fed governor was so controversial that over 100 distinguished US economists — including seven Nobel laureates and 79 former Fed officials — despatched an open letter to the Senate begging it to not verify her.
She nonetheless solely narrowly did not make it.
Dovishness: 🕊️🕊️🕊️🕊️🕊️
Trumpism: 🍊🍊🍊🍊🍊
Freakout potential: 🤮🤮🤮🤮🤮🤮🤮🤮🤮🤮🤮🤮🤮🤮🤮🤮
Lorie Logan
By far one of many extra intriguing names that has been leaked out in current days.
Logan is a profession Fed official who’s at present the top of the Dallas Fed, after having headed the New York Fed’s System Open Market Account desk — which is tasked with dealing with the central financial institution’s stability sheet and rates of interest equipment.
So though she’s contributed to the decline of economics PhDs at the Fed, Logan would include sterling credentials in the case of the sensible sides of financial coverage. Her speeches on quantitative tightening are must-reads [all speeches on quantitative tightening are must-reads — Ed].
Nonetheless, she hasn’t voted to chop rates of interest this yr, which we suspect goes to be the principle factor Trump seems to be for in his nominees.
Dovishness: 🕊️
Trumpism: 🍊
Freakout potential: 🤮
Philip Jefferson
The Fed’s present vice chair has apparently additionally made the Trump administration’s expanding list of possible candidates, however this appears an excellent longer shot than Logan.
Firstly, Jefferson was appointed by Joe Biden, which appears to be an automatic red flag for Trump these days. Secondly, he has constantly voted with and voiced help for the Powell’s financial coverage technique, which isn’t the best way to endear your self with the present White Home incumbent.
Thirdly, though Jefferson’s financial coverage experience is unquestionable — he’s a former Fed staffer and economics professor — he’s also referred to as an professional on poverty and inequality. That’s most likely one other fast disqualifier for the Trump administration.
Dovishness: 🕊️
Trumpism: 🍊
Freakout potential: 🤮
Rick Rieder
Named by CBNC alongside Zervos this morning, and possibly has the identical (low) possibilities of getting the Fed job.
Though we will see the likes of Bessent favouring somebody with oodles of economic expertise like Rieder — he’s chief funding officer for world fastened revenue at BlackRock — it feels just like the administration is now simply throwing out the names of anybody considerably credible who has voiced support for lower interest rates. And he’s most likely too smart to just accept it, even when provided.
Alternatively, at BlackRock Rieder “solely” manages $2.4tn. On the Fed he’d have $6.6tn to deal with.
Dovishness: 🕊️🕊️
Trumpism: 🍊
Freakout potential: 🤮🤮
Larry Lindsey
OK that is now simply getting foolish. Alphaville suspects that the rising listing is pushed by 1) encouraging extra folks to publicly name for rate of interest cuts by dangling a giant job in entrance of them, 2) including competent however unlikely candidates to make the train appear extra rigorous and confer legitimacy to the loons included, and three) to therapeutic massage some egos.
Lindsey’s inclusion appears to be a mixture of the final two. He has all the same old qualifiers — Harvard PhD in economics, severe stints at Treasury beneath Reagan and each Bushes, and most significantly a Fed governorship from 1991 to 1997 — however nonetheless appears like room filler.
Dovishness: 🕊️🕊️
Trumpism: 🍊🍊
Freakout potential: 🤮
Invoice Pulte
Let me simply add this to the water desk…
Invoice Pulte could be an distinctive choose to run the Federal Reserve. He’s crushing it at Fannie/Freddie and deeply understands charges.
I believe the subsequent Fed Chair must be: somebody who understands charges as a result of they actively… https://t.co/Ekmm5du0EZ
— Chamath Palihapitiya (@chamath) July 22, 2025
Dovishness: 🕊️🕊️🕊️🕊️🕊️
Trumpism: 🍊🍊🍊🍊🍊
Freakout potential:
