Trump says he'll likely name temporary Fed governor to open seat

Catherine Lucey, Bloomberg News on Aug 6, 2025

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WASHINGTON — President Donald Trump indicated he would likely nominate a temporary Federal Reserve governor to fill the soon-to-be vacant seat on the central bank’s board within the coming days, rather than use the seat to signal his choice to replace Jerome Powell as chairman.

“We’re probably going to go with the temp and then a permanent,” Trump told reporters Wednesday at the White House. “I think the temp is going to be named, I’d say, over the next two, three days, and then we’re going to go permanent.”

Fed Governor Adriana Kugler announced last week that she plans to vacate her role on Aug. 8.

That gives Trump a choice. He can elevate someone to serve out the rest of her term, which expires in January, and keep weighing his options for the more prominent chair role, or he can make a decision on the Fed chair role months earlier than he’d planned and announce that now.

Several of those on Trump’s Fed short list are outsiders, and the president isn’t guaranteed to get another chance to name a new board member before Powell’s term as chair expires in May. While Fed chairs typically step off the board when they step down, he does have the option to stay on and deny Trump a second opening. Powell’s underlying post as a governor extends into 2028 and he has so far declined to reveal his plans.

Advisers had encouraged the president to name a short-term pick first, simply to complete Kugler’s term that expires in January. That approach would give Trump weeks or months more to interview candidates to serve as chair. And it’s the strategy Trump said Wednesday he’s leaning toward.

Trump said he was considering “probably” three candidates for the temporary position, adding that they could come from Wall Street.

“Yeah, essentially, we’re all from Wall Street, aren’t we, when you get right down to it?” Trump said.

He added that Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and Vice President JD Vance were among the advisers participating in the process.

Separately, Trump reiterated that he considered “the two Kevins” — former Federal Reserve Governor Kevin Warsh and National Economic Council Director Kevin Hassett — as top candidates for the Fed Chair role when it becomes open.

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(With assistance from Justin Sink.)

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