Donald Trump, during a Cabinet meeting at the White House on Tuesday, said he will name his pick for Federal Reserve chair “probably early next year.” That sets a new public timeline for replacing Jerome Powell, whose term ends in May 2026.
Trump’s quote was: “We’ll be announcing somebody, probably early next year, for the new chairman of the Fed.”
This new schedule runs past the earlier timeline shared by Treasury Secretary Scott Bessent, who had been overseeing the search and previously said a decision might come by Christmas.
Trump’s team is keeping the final choice quiet for now, but the president’s message Tuesday locked in the fact that the name will drop sometime at the start of 2026, not before the end of this year.
That gives him space to tighten control over the central bank, a goal he hasn’t been shy about.
Trump Criticizes Powell and Considers Hassett
Trump didn’t skip the chance to once again blast Powell over how he’s handled interest rates. He’s been pressuring the Fed for months, arguing that cuts should’ve come faster. On Tuesday, he said Powell was a “stubborn ox, who probably doesn’t like your president.” Powell’s term as chair ends in May, but he could legally stay on the Fed board as a governor until 2028 if he’s not reappointed.
The criticism wasn’t limited to interest rate policy. Trump’s White House has also taken aim at the Fed over the cost of building renovations, and is currently involved in a legal battle over Trump’s attempt to remove Fed Governor Lisa Cook from her seat.
As for who might be taking Powell’s spot, the buzz is around Kevin Hassett, director of the White House National Economic Council. His name has jumped to the top of the shortlist, and Polymarket odds show his chances have surged to a record 81%.
He’s seen as being fully on board with Trump’s push for lower rates and has already said he’d take the job if offered. Speaking on Fox News, Hassett said, “I want to serve my country, and I want to serve my president. But you know, we’ll see how it goes. There are a lot of great candidates.”
Other Potential Candidates and Implications of a New Chair
Even with Hassett leading the odds, other names haven’t been ruled out. Trump in September listed Hassett, Kevin Warsh, and Christopher Waller as his top three. Others still in the conversation include Michelle Bowman and Rick Rieder of BlackRock.
Trump keeps joking that he’d pick Bessent himself, though Bessent has said no every time. But Trump has a history of sudden switches, and no pick is final until it’s made public.
Whoever gets nominated will need to go through Senate confirmation. If the person is from outside the Fed system, they’d be appointed to a 14-year term starting February 1st. That would give Trump’s influence over the central bank some serious staying power, far beyond his own presidency.
This wouldn’t be Trump’s first time picking a Fed chair. He chose Powell during his first term, but later said he regretted it after Powell didn’t move fast enough on cutting rates. This time, Trump wants a chair who won’t hesitate. Hassett fits that mould.
On November 20, he told Fox News he would “be cutting rates right now” if he were Fed chair, because “the data suggests that we should.” Hassett also said the central bank lost control of inflation after the pandemic and hasn’t recovered its grip.