• James Bullard signals willingness to serve as Fed Chair if Treasury Secretary Scott Bessent supports his candidacy.
  • Bessent is interviewing multiple candidates, with a shortlist expected by fall as Trump weighs interim appointments.
  • The selection will shape monetary policy amid political pressure for rate cuts and lingering inflation concerns.

Bullard Defers to Bessent on Fed Chair Prospects

Former St. Louis Fed President James Bullard has indicated he would be open to leading the Federal Reserve if Treasury Secretary Scott Bessent moves forward with his candidacy, according to people familiar with the matter. The remarks underscore Bullard’s deference to the Trump administration’s selection process as it vets potential successors to Chair Jerome Powell.

Bessent is conducting interviews with a slate of contenders, including Fed Governors Michelle Bowman and Philip Jefferson, Dallas Fed President Lorie Logan, and former Trump economic adviser Kevin Hassett, among others. A final shortlist is expected by fall, though the timeline could shift depending on Senate confirmation dynamics.

Interim Appointments Loom as Kugler Departs

Separately, Trump advisers are pushing for an interim appointment to fill the vacancy left by Governor Adriana Kugler, who is stepping down in August. The move would buy the administration more time to finalize leadership decisions, with Trump signaling he may name a replacement soon. An interim pick could be someone already Senate-confirmed in another role, streamlining the process.

Market participants are closely tracking the Fed chair selection, as the choice could tilt monetary policy toward easing or stability. Bowman has hinted at openness to rate cuts, aligning with Trump’s preference for lower borrowing costs, while Jefferson and Logan have emphasized holding rates steady amid inflation risks. Bullard, known for his early advocacy of aggressive rate hikes in 2022, has recently adopted a more neutral stance.

Policy Implications and Confirmation Calculus

The next chair will face balancing political pressure for accommodative policy with the Fed’s inflation-fighting credibility. Analysts note that the administration is weighing both internal Fed officials and external candidates, with confirmability in a closely divided Senate a key factor.

Under federal law, the president nominates the Fed chair for a four-year term, subject to separate Senate confirmation. Powell’s current term began in May 2022, and his successor’s approach to rates could redefine the central bank’s trajectory in a politically charged environment.