President Donald Trump has a notoriously strained relationship with Federal Reserve Chair Jerome Powell as the two have frequently clashed over monetary policy.

However, it appears that the president is close to settling on a replacement for Powell when his term expires next year. 

Treasury secretary has narrowed list down to five candidates

According to CNBC, that suggestion was put forward on Monday by Treasury Secretary Scott Bessent as he spoke with reporters aboard Air Force One.

Bessent indicated that he has settled on a short list that consists of just five individuals, including current Federal Reserve Governors Christopher Waller and Michelle Bowman.

Other potential contenders for the top spot are National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock executive Rick Rieder.

"We're going to do a second round, and we hope to present a good slate to the president right after Thanksgiving," Newsmax quoted the Treasury secretary as saying. Trump agreed, remarking, "Maybe by the end of the year, we'll make a decision on the Fed."

President blocked from firing Federal Reserve Governor Lisa Cook

Meanwhile, CNBC noted that the president has thus far been unsuccessful in his push to fire Federal Reserve Governor Lisa Cook, who was appointed by former President Joe Biden.

Breitbart reported this past August how Trump sent Cook a letter which explained that he was removing the Federal Reserve governor for cause, citing allegations that she had engaged in mortgage fraud.

🚨 President Donald J. Trump relieves Federal Reserve Governor Lisa Cook of her position pic.twitter.com/tJV8m4mlHW

— Rapid Response 47 (@RapidResponse47) August 26, 2025

"The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks," Trump asserted in the letter.

"In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity," the president went on to add.

Appeals court refused Trump's request to lift Cook's injunction

Yet Cook later obtained an injunction which prevented Trump from firing her, and Breitbart reported that the U.S. Court of Appeals for the District of Columbia Circuit refused his request to lift it.

Biden-appointed Judges Michelle Childs and Bradley Garcia both determined last month the president had not provided Cook with sufficient notice of her impending termination or time to challenge it.

"The government may not prioritize any policy goal over the Due Process Clause," Garcia declared in writing his majority opinion.