US President Donald Trump has said he would “shortly” announce his nominee to fill an open seat on the Federal Reserve’s Board of Governors — and potentially his pick to lead the US central bank — but confirmed that Treasury Secretary Scott Bessent is no longer under consideration for either role.
In an interview, Trump said he was surprised — but not displeased — by the early resignation of Fed Governor Adriana Kugler, whose term was due to end on 31 January. Her departure has accelerated Trump’s plans for the central bank and presents an opportunity to install a successor who could also be elevated to Fed chair when Jerome Powell’s term ends in May.
“Adriana’s decision to step down was a pleasant surprise,” Trump said. “It’ll be one of four people,” he added, noting that both current White House economic adviser Kevin Hassett and former Fed Governor Kevin Warsh were “very good” possibilities. He declined to name the other two contenders, though current Fed Governor Christopher Waller is believed to be under serious consideration. Waller has advocated rate cuts, but not at the pace Trump desires.
“There are numerous people that are qualified,” the president said. “I am going to be announcing that very shortly,” he added, referring to the nomination to replace Kugler, who was appointed by former President Joe Biden.
Trump said Bessent would not be in the running because he wishes to remain in his role leading the Treasury Department.
The nominee is expected to serve out the remainder of Kugler’s term, which expires in a few months. However, Trump indicated he may also nominate that person to a full 14-year term and potentially to succeed Powell as Fed chair. That would give the appointee several months and policy meetings to begin influencing the central bank’s direction.
“A lot of people say, when you do that, why don’t you just pick the person who is going to head up the Fed? That’s a possibility too,” Trump said.
The president has been openly critical of Powell for not cutting interest rates since Trump’s return to office in January. He has reportedly considered firing Powell — even as the Fed weighs a complicated mix of slowing growth, a weakening job market, and persistent inflation that remains above its 2% target.
The central bank, mandated by Congress to ensure stable prices and maximum employment, now faces a possible collision between those two goals — a scenario that could force painful trade-offs.
Kugler’s resignation was announced the same day Trump fired Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer, after data showed slowing job growth in the first months of his administration. Trump, without offering evidence, accused the BLS of manipulating the figures to make him look bad.
The move sent shockwaves through the global economics and statistics community, many of whom interpreted it as a classic case of shooting the messenger. Trump’s next choices — to lead both the BLS and the Federal Reserve — are now likely to come under intense scrutiny.
Michael Strain, director of economic policy studies at the conservative American Enterprise Institute, warned that trust in US data could suffer long-term damage if partisan loyalty is prioritised over institutional independence.
“Imagine if one of your concerns is that there’s a lackey in charge of the agency and the numbers are fake. That’s … another level of problems,” Strain said. “Maybe he sees this independence thing really matters. Maybe he’s got somebody from the outside saying ‘Look, Mr President, if you appoint somebody who’s perceived to be a lackey as the Fed chair, take the BLS freakout and multiply by 1,000.’”
Economists have long warned that Trump’s mix of import tariffs and unpredictable trade policies could result in both higher inflation and slower job growth — a forecast that may explain the Fed’s recent reluctance to lower interest rates until inflation trends become clearer.
Last week, the Fed held its policy rate steady at 4.25% to 4.50%, with Waller dissenting. He argued that inflation risks from tariffs were minimal, while broader indicators of growth and employment were deteriorating.
Friday’s July jobs report — showing weak monthly gains and downward revisions to prior months — appeared to support Waller’s view and boosted market expectations that the Fed could cut rates at its next meeting on 16-17 September.
Boluwatife Enome
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