U.S. President Donald Trump has narrowed his selection for the next Federal Reserve chair to three primary candidates: Kevin Hassett, Kevin Warsh, and Christopher Waller. The announcement came during a White House briefing, where Trump confirmed that Scott Bessent, initially considered, had declined interest in the role. Bessent, who was present in the Oval Office, reiterated his decision not to pursue the position. n nHassett, currently serving as director of the National Economic Council, has consistently supported the administration’s economic agenda, including its stance on trade tariffs and monetary policy. He shares the president’s view that interest rates have remained too high, constraining housing affordability and economic expansion. n nWarsh, a former member of the Fed’s board, has publicly advocated for significant changes in the central bank’s leadership and policy framework, using terms like “regime change” to describe the transformation he believes is necessary. His nomination would signal a break from traditional monetary policy approaches. n nWaller, who previously led research at the Federal Reserve Bank of St. Louis before his 2020 appointment as governor, represents a more conventional, institutionally grounded option. His background suggests a preference for data-driven decision-making within the existing Fed structure. n nThe shift in leadership could have wide implications for financial markets, which monitor such appointments closely for signals about future interest rate trajectories and inflation control strategies. Recent labor data showed U.S. job growth slowing in August, with unemployment rising to 4.3%—a near four-year high—prompting concerns about economic momentum. n nAlthough Fed Chair Jerome Powell has acknowledged risks to the labor market and hinted at a possible quarter-point rate cut, this falls well short of the aggressive reductions Trump has called for. The outcome of the selection process may influence the central bank’s independence and its response to fiscal and trade policies. n
— news from Reuters
— News Original —nTrump’s short list for Fed: Hassett, Warsh and Waller nWASHINGTON, Sept 5 (Reuters) – U.S. President Donald Trump ‘s short list of candidates to succeed Jerome Powell as chair of the Federal Reserve now includes his aide Kevin Hassett, former Fed Governor Kevin Warsh and current Fed Governor Christopher Waller. n nTrump told reporters at the White House that the three men were the finalists for appointments to the Fed, adding he would consider Scott Bessent, too, but that the Treasury secretary was not interested. n nSign up here. n nBessent, who was with the president in the Oval Office, confirmed his lack of interest. n n”I had four,” Trump said. “Now I ‘m talking about three. He (Bessent) told me: ‘I ‘m not leaving ‘.” n nThe president has made clear he intends to install a Fed leader more aligned with his push for rapid interest-rate cuts, browbeating Powell for being “too late” to act on borrowing costs and for hurting home buyers with higher mortgage rates. n nPowell ‘s Fed has kept rates on hold all year on concern that Trump ‘s tariffs could reignite inflation, although recently his concerns have shifted to center more on the slowing labor market. n nThe choice of a Fed chair will carry high stakes for financial markets, which closely watch Fed leadership changes for clues about the direction of interest rates, inflation policy and the central bank ‘s independence. n nU.S. job growth weakened sharply in August and the unemployment rate increased to nearly a four-year high of 4.3%, the Labor Department said on Friday, confirming that labor market conditions were softening. n nPowell last month noted downside risks to the labor market that “may warrant” a careful policy adjustment, remarks that financial markets and analysts took to mean he would likely support a quarter-point interest-rate cut in September. n nThat ‘s far short of the several percentage points of cuts that Trump has demanded. n nHassett, the director of the National Economic Council, has been a reliable advocate for Trump ‘s tariffs and other policies, and agrees with Trump that the Fed has kept rates inappropriately high. n nWarsh has repeatedly called for “regime change” at the Fed. n nWaller, who ran the St. Louis Fed ‘s research department before Trump picked him to be Fed governor in 2020, would be an institutionalist pick. n nBessent released a barrage of criticism against the Fed on Friday and called for a full review of the central bank ‘s operations, from staffing to research to monetary policy. n nReporting By Trevor Hunnicutt, Ann Saphir and Jarrett Renshaw; Editing by Leslie Adler and Edmund Klamann