Key Takeaway
President Trump is weighing legal action against Fed Chair Powell while a diverse pool of candidates, including Chris Waller, emerges as potential successors.
President Donald Trump is reportedly weighing legal action against Federal Reserve Chair Jerome Powell, according to White House Press Secretary Karoline Leavitt.
Earlier on the 12th of August, Trump revealed that he is contemplating moving forward with a significant lawsuit against Powell.
This highlighted rising tensions with the central bank’s leadership.
Remarking on the same, Trump wrote,
“Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board.”
He further stated,
“I am, though, considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings.”
Who will take the next Fed Chair?
According to a recent CNBC report , the Trump administration is evaluating a broad and diverse slate of candidates.
Among the names gaining traction is Rick Rieder, BlackRock’s Global CIO for Fixed Income, who has publicly supported rate cuts.
He joins Jefferies Chief Market Strategist David Zervos and former Fed Governor Larry Lindsey on the growing list of contenders.
Other potential candidates reportedly include current Fed officials such as Vice Chair for Supervision Michelle Bowman, Governor Chris Waller, and Vice Chair Philip Jefferson.
Marc Summerlin, Dallas Fed President Lorie Logan, and former St. Louis Fed President James Bullard are also said to be under consideration.
President Trump has confirmed that “the Two Kevins”, Kevin Warsh and Kevin Hassett, remain in the running.
With such a wide-ranging field, the choice of Powell’s successor could mark a pivotal shift in U.S. monetary policy, especially as debates over interest rates and economic strategy continue to dominate the financial landscape.
Given the extended deliberation process, President Trump is not expected to announce a new Fed Chair imminently, effectively ruling out the prospect of a “Shadow Fed.”
What is Polymarket suggesting?
However, market sentiment points to Fed Governor Chris Waller as the leading candidate for Fed Chair. Notably, Polymarket data gave him a 27.5% chance of being selected.
This speculation comes alongside the Federal Reserve’s latest move to keep interest rates steady at 4.25-4.5%, in line with expectations following June’s 0.3% core CPI reading.
Henceforth, steady rates and debates over Powell’s successor underscore the administration’s delicate task in steering U.S. monetary policy.
