Trump reveals his pick for the next Fed chair
President Donald Trump stated on Sunday that he has made his decision regarding the next Federal Reserve chair, emphasizing his expectation that his nominee will implement interest-rate cuts. “I know who I am going to pick, yeah,” Trump stated, refraining from disclosing his selection. “We’ll be announcing it.” Trump has often criticized current Fed chief Jerome Powell for not lowering rates quickly enough and has indicated a desire for a chair who will more aggressively seek cuts. Sources informed that Kevin Hassett, Director of the White House National Economic Council and Trump’s chief economic adviser, is regarded as the probable candidate to replace Powell. Hassett refrained from commenting on whether he views himself as the leading candidate to succeed Fed Chair Jerome Powell, labeling the report as a “rumor.”
He noted the favorable market response that Trump is expected to announce his selection soon — a nuanced response to worries that investors might perceive him as overly aligned with the president. “We had a great Treasury auction, interest rates went down and I think that the American people could expect President Trump to pick somebody who’s going to help them have cheaper car loans and easier access to mortgages at lower rate,” Hassett said. “That’s what we observed in the market reaction to the speculation regarding me.” According to sources, Trump has confidence in Hassett and perceives him as sharing the goal of advocating for more aggressive interest-rate cuts at the central bank. Hassett has expressed his willingness to accept the role if approached, although analysts caution that he might face challenges in unifying the Fed’s rate-setting committee and could be more susceptible to pressure from Trump.
His emphasis on the market reaction served as a de facto rebuttal to those concerns. Despite Trump’s reputation for making last-minute alterations, the possibility of Hassett’s nomination for the position momentarily drove the 10-year Treasury yield beneath 4 percent. Treasury Secretary Scott Bessent, who has overseen the selection process, stated last week that Trump could announce his nominee prior to the Christmas holiday on December 25. In addition to Hassett, the list of finalists features Fed governors Christopher Waller and Michelle Bowman, former Fed governor Kevin Warsh, and BlackRock’s Rick Rieder.
Trump frequently expresses his desire for Bessent to take on the role of chair, a proposition that Bessent has consistently declined. Whoever Trump selects will need Senate confirmation as chair and is likely to serve a 14-year term as a Fed governor starting in February if the choice is an outsider. Powell’s term as chair concludes in May.
