• President Trump eliminates Scott Bessent from Fed chair consideration, stating he prefers to remain Treasury Secretary.
• Trump narrows potential Fed chair candidates to four, including Kevin Warsh and Kevin Hassett.
• Adriana Kugler's unexpected resignation creates urgency for Trump's Fed board appointments.
• Trump continues to criticize current Fed Chair Jerome Powell for not lowering interest rates.
• Nominee for Kugler’s seat to require Senate confirmation and could influence future Fed policy.

U.S. President Donald Trump has ruled out Treasury Secretary Scott Bessent as a candidate for the next chair of the Federal Reserve, as Bessent expressed a desire to remain in his current role. "I love Scott, but he wants to stay where he is," Trump stated during an interview on CNBC, indicating his focus has shifted to other candidates, including former Fed Governor Kevin Warsh and White House Economic Adviser Kevin Hassett, along with two unnamed individuals, as he prepares for upcoming appointments, according to The Hill and Reuters.

Trump's decision to exclude Bessent coincided with the announcement that Fed Governor Adriana Kugler would vacate her seat earlier than expected. Trump described Kugler's departure as a "pleasant surprise," which has prompted him to accelerate plans for filling the Fed board vacancy. He aims to select a nominee to fill Kugler's seat by the end of the week, creating a potential pathway for that individual to also succeed Jerome Powell, whose term is set to expire in May 2026, according to Reuters and South China Morning Post.

Trump has publicly criticized Powell for not implementing rate cuts, alleging the Fed's current policies are misaligned with economic growth objectives. The President expressed strong discontent with Powell, referring to him as "too late" and engaging in discussions about the potential to relieve him of his duties, although he has reportedly backed away from making such a drastic move for now. The central bank's challenges are compounded by conflicting goals of sustaining stable prices and promoting maximum employment, an ongoing concern highlighted by economists, according to Reuters, India Times, and Reuters.