After months of public disagreements between US President Donald Trump and Federal Reserve Chairman Jerome Powell over rate cuts, the unexpected announcement by Fed Governor Adriana Kugler to leave her position has brought question of Powell's replacement to fore.

Trump confirmed Treasury Secretary Scott Bessent declined the role, saying, “I want to work with you,” while market-watchers weigh how each candidate could impact Fed independence and dollar strength.

President Donald Trump wants to lower interest rates to approximately zero, a change that could goose the economy in the short term but in the long term would lead to roaring inflation. Federal Reserve Chairman Jerome Powell won't do that,