Trump Narrows Field, Targets Early 2026 for Federal Reserve Chair Announcement

President Donald Trump plans to name his pick for Federal Reserve Chair early next year. He made the statement during a White House cabinet meeting on Tuesday. The announcement will decide the next leader of the U.S. central bank.

The timeline offers clarity after earlier speculation. Trump confirmed he has narrowed the list from about ten candidates to a single finalist. This critical decision will shape monetary policy for years to come.

Hassett Emerges as Leading Contender for Top Fed Role

White House National Economic Council Director Kevin Hassett is viewed as the likely choice. This information comes from sources familiar with the matter cited by Bloomberg News. The selection process has been overseen by Treasury Secretary Scott Bessent.

Other individuals were also considered as finalists. The list included current Fed Governors Christopher Waller and Michelle Bowman. Former Governor Kevin Warsh and BlackRock’s Rick Rieder were also in the mix.

A Presidential Push for Aggressive Rate Policy

Trump has repeatedly pressured the Fed to cut interest rates more aggressively. He has criticized current Chair Jerome Powell, whose term ends in May 2026, as being too slow. The president has signaled he wants a successor who will move more forcefully.

This nomination represents Trump’s biggest chance to reshape the powerful institution. According to Reuters, Trump is known for surprise decisions, so the pick isn’t final until announced. The chosen nominee will require confirmation by the U.S. Senate.

The decision on the next Federal Reserve chair is one of the most consequential economic appointments of Trump’s term. It will directly influence borrowing costs for millions of Americans and businesses globally. The early 2026 announcement will set the tone for U.S. monetary policy.

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Who is the reported frontrunner for Fed Chair?

Kevin Hassett, the Director of the White House National Economic Council, is seen as the leading candidate. Sources familiar with the selection process have indicated this to Bloomberg News. He has been a key economic advisor to the president.

When will the official announcement be made?

President Trump stated the announcement will come “probably early next year,” meaning early 2026. This followed earlier suggestions from aides that it could happen around the Christmas period. The new chair’s term would begin after Jerome Powell’s ends in May.

Why does Trump want to replace Jerome Powell?

The president has been highly critical of Powell’s approach to interest rates. Trump has called Powell “too slow and timid” in cutting borrowing costs. He expects a new chair to pursue more aggressive rate reductions to stimulate the economy.

Can Jerome Powell remain at the Fed?

Yes, Powell could remain on the Federal Reserve Board as a governor. His term as Chair ends in May 2026, but his separate term as a board governor lasts longer. He could potentially serve for another two years in that capacity.

Who else was considered for the position?

The candidate pool included several prominent figures. Finalists reportedly included Fed Governors Christopher Waller and Michelle Bowman. Former Fed Governor Kevin Warsh and BlackRock executive Rick Rieder were also considered.

Trusted Sources: Reuters, Bloomberg News