Trump Says He’s Already Chosen Powell’s Successor at the Fed
On his flight back to Washington from Florida, that he already has a name in mind. “I know who I’m going to pick, yes,” he said.
Quick overview
- President Trump has identified a potential replacement for current Fed Chair Jerome Powell amid ongoing speculation about interest rate cuts.
- The Federal Reserve has been a contentious issue during Trump's administration, particularly regarding rate cuts during the government shutdown.
- Trump's preferred candidate for the Fed Chair position is Kevin Hassett, the director of the National Economic Council.
- The Federal Open Market Committee is set to meet on December 9, with expectations for a possible interest rate reduction.
Amid uncertainty over the next interest-rate cut, the U.S. president already has someone in mind to take over the nation’s central bank.
The Federal Reserve has been one of the main flashpoints of Donald Trump’s administration, shaped by rate cuts during the longest government shutdown in U.S. history. Yet the president has now confirmed that he knows exactly whom he will choose to replace current Fed Chair Jerome Powell.
Amid rumors and speculation, expectations for a 25-basis-point rate cut continue to swing with economic data and the administration’s policy signals. For now, the odds favor another reduction, especially after September’s stronger-than-expected jobs report.
Still, the tension between Trump and Powell has not eased. The president has repeatedly criticized Powell over the past year for failing to cut rates quickly enough to stimulate the economy. Powell, in turn, has argued that his priority is avoiding a policy misstep that could jeopardize the post-pandemic recovery.
The Federal Open Market Committee (FOMC) is preparing for its final meeting of the year on December 9, with the spotlight squarely on interest rates. Meanwhile, Powell’s days appear numbered. Although his term officially ends in May 2026, Trump is expected to announce his replacement before Christmas, according to Treasury Secretary Scott Bessent.
Who will be the next Fed Chair?
While Bessent has indicated that the decision is down to five strong candidates, Trump told reporters aboard Air Force One, on his flight back to Washington from Florida, that he already has a name in mind. “I know who I’m going to pick, yes,” he said.
That person is Kevin Hassett, director of the National Economic Council and the president’s top economic adviser. His close relationship with Trump has positioned him as the leading contender to become the next chair of the Federal Reserve.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
