U.S. President Donald Trump has stated that he has already decided who will succeed current Federal Reserve (Fed) Chair Jerome Powell, whose term ends in May. Trump has criticized Powell on multiple occasions for not accelerating interest rate cuts.
Trump confirmed his decision aboard Air Force One while returning to Washington from Florida. "I know who I'm going to pick, yes," the president said, refusing to deny speculation that it might be Kevin Hassett, the White House's top economic advisor.
Trump announced that he will "soon" reveal Powell's successor, whose term expires in May 2026. Powell was appointed to the position by Trump himself in 2018 and later reappointed by Democratic President Joe Biden.
Since taking office in January of this year, Trump has consistently criticized Powell for not speeding up interest rate cuts to stimulate the economy. The head of monetary policy has resisted this, arguing that caution regarding inflation and the labor market is necessary to not derail the post-pandemic economic recovery and disinflation.
Treasury Secretary Scott Bessent recently said that Trump would likely announce Powell's replacement before Christmas and that the choice is now narrowed down to five strong candidates. Hassett, director of the White House National Economic Council, and Federal Reserve Governor Christopher Waller are considered potential frontrunners.
The Federal Open Market Committee (FOMC) is preparing for its last meeting of the year on December 9. Recall that in October, Powell lowered expectations for another interest rate cut due to dissent within the Fed, fear of reigniting high inflation, and a lack of new data due to the 40-day government shutdown that ended on the 12th.
