Donald Trump told a White House Cabinet meeting on Tuesday that he would name a Federal Reserve chairman “probably early next year.” This sets a new public timeline for replacing Jerome Powell, whose term ends in May 2026.
President Trump’s famous quote was, “We’ll probably announce someone as the new Fed chair early next year.”
The new timeline exceeds a previous one shared by Treasury Secretary Scott Bessent, who is overseeing the investigation and previously said a decision could be made by Christmas.
Trump’s team has remained silent on the final choice for now, but the president’s message on Tuesday cemented the fact that the name will be retired sometime in early 2026, rather than by the end of this year.
This gave him room to tighten control over the central bank, a goal he has not been shy about.
Trump pursues Powell again as Hassett odds rise
President Trump didn’t miss the opportunity to criticize Chairman Powell again for the way he handled interest rates. He has been pressuring the Fed for months, saying it should have cut rates sooner. On Tuesday he said Mr. Powell is “a stubborn bull and probably doesn’t like the president.” Powell’s term ends in May, but if he is not reelected, he could legally remain on the Fed’s board of directors until 2028.
Criticism was not limited to interest rate policy. The Trump White House has also attacked the Fed over building renovation costs and is currently embroiled in a legal battle over Trump’s attempt to fire Fed Director Lisa Cook.
Kevin Hassett, chairman of the White House National Economic Council, has been a hot topic as to who will succeed Powell. His name has risen to the top of the shortlist, with his chances rising to a record 81%, according to Polymarket odds.
He is seen as fully supportive of President Trump’s push to lower interest rates and has already announced his intention to take the job if offered. “I want to serve my country and I want to serve the president, but we’ll see what happens. There are a lot of great candidates,” Hassett said on Fox News.
Other candidates remain as President Trump delays announcement
Although Hassett leads the odds, other names have not been ruled out. In September, President Trump named Hassett, Kevin Warsh and Christopher Waller as his top three candidates. Others still in conversation are BlackRock’s Michelle Bowman and Rick Rieder.
Mr. Trump keeps joking that he would choose Mr. Bessent himself, but Mr. Bessent has said no every time. But Trump has a history of sudden turnovers, and the final selection will not be determined until they are made public.
Whoever is nominated must be approved by the Senate. If he comes from outside the Fed system, he would be appointed for a 14-year term beginning February 1. That would give President Trump considerable staying power over the central bank, far beyond his own presidency.
This is not the first time Trump has chosen a Fed chair. He chose Powell during his first term, but later said he regretted it because Powell didn’t move quickly enough to cut rates. This time, Trump wants a chairman who won’t hesitate. Hassett fits that mold.
On Nov. 20, he told Fox News that if he were Fed chairman, “I would cut rates right now” because “the data suggests we should.” Hassett also said the central bank lost control of inflation after the pandemic and its control has not been regained.
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