List of Main Candidates to Replace Powell

[Ben Graham]

While everyone awaits the start of the two-day meeting of the Federal Reserve System, U.S. Treasury Secretary Scott Bessent today named five politicians who are expected to replace Federal Reserve Chair Jerome Powell next year.

The shortlist of candidates has narrowed to current Fed Board members Christopher Waller and Michelle Bowman, former Fed governor Kevin Warsh, Kevin Hassett, director of the White House National Economic Council, and Rick Rieder, head of BlackRock Inc.

Bessent's statement has undoubtedly added intrigue and tension to financial markets. The selection of a new Fed Chair is not just a personnel decision — it is the determination of monetary policy direction for years ahead. Each of the listed candidates has their own views on the economy, inflation, and financial regulation, and the future of the U.S. economy will largely depend on who takes the position.

Given that Donald Trump wants to see a Chair loyal to his policy agenda, many now consider Waller the leading contender, as he has recently shifted to a much more dovish stance than before. The appointment of a new Fed Chair will be one of the key events of next year and will have a significant impact on the global economy.

Bessent, who is conducting interviews for the position, reiterated that he plans to hold another round of interviews and hopes to present a "strong shortlist" to President Donald Trump after Thanksgiving.

"Right now, we have a person who is completely incompetent," Trump recently told reporters, repeating his usual criticism of Powell, whom he blames for holding back the economy by refusing to lower interest rates.

Fed members are expected to cut borrowing costs by 25 basis points at their two-day meeting, which concludes on October 29. This would be the second rate cut by the Fed this year. However, Trump wants the central bank to cut rates by three full percentage points.

The next Chair will likely be appointed to a 14-year term as a Federal Reserve governor, beginning in early 2026. Powell's term as Chair expires in May.

Current Technical Outlook for EUR/USD

At present, euro buyers need to break above the 1.1650 level. Only this will allow the pair to target a test of 1.1675. From there, it could move up toward 1.1725, though doing so without the support of major market players would be quite challenging. The ultimate upward target is 1.1755. In case of a decline, I expect significant buying interest to appear near 1.1620. If there are no major buyers around that level, it would be better to wait for a retest of the 1.1600 low or consider opening long positions near 1.1580.

Current Technical Outlook for GBP/USD

For pound buyers, the immediate task is to break through resistance at 1.3335. Only this will open the way toward 1.3355, above which further upside will be difficult. The ultimate target is the 1.3385 level. In case of a decline, the bears will try to regain control near 1.3305. If they succeed, a break below this range would deal a serious blow to bullish positions and push GBP/USD down toward 1.3280, with a potential move to 1.3250.

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