Overview

• On August 5, President Trump said Treasury Secretary Scott Bessent declined interest in the Fed chair role and is no longer under consideration.
• The president has reduced the pool of potential successors to four finalists, including former Fed governor Kevin Warsh and National Economic Council Director Kevin Hassett.
• Fed Governor Adriana Kugler’s surprise resignation, effective this Friday, opened a seat on the Board of Governors and accelerated Trump’s vetting process.
• Trump’s efforts to reshape Federal Reserve leadership underscore his ongoing criticism of Chair Jerome Powell’s refusal to cut interest rates.
• Legal limits under the Federal Reserve Act and a Supreme Court ruling bar removing a sitting chair without cause, highlighting concerns over institutional independence.