President Trump has confirmed he has chosen his next nominee for Federal Reserve Chair, though he has not yet publicly named the candidate. Kevin Hassett, the current Director of the White House National Economic Council, is widely viewed as the leading contender, with markets treating him as the overwhelming favorite ahead of the administration’s official announcement expected in early 2026.
Powell’s Term Nears Its End As White House Prepares Transition
Jerome Powell, the current Fed Chair, is set to complete his term in May 2026, creating one of the most consequential leadership openings in global monetary policy. Trump told reporters on December 1, 2025, that he has made his decision but will reveal the nominee “soon” or at the start of next year.
The data indicates that this timeline aligns with the administration’s preference to shape the Fed’s next chapter well before Powell’s term expires.
Hassett Viewed As Market Favorite For The Role
Multiple reports identify Kevin Hassett as the top choice, a view reinforced by prediction markets assigning him a high probability of securing the nomination. Hassett has publicly stated he would be “happy to serve,” adding momentum to expectations.
Market analysts point to Hassett’s long-standing alignment with Trump’s views on monetary policy, especially the belief that the Federal Reserve should adopt lower interest rates to support economic growth. This policy stance has already begun influencing rate-expectation models and economic forecasting.
What A Hassett Nomination Would Mean For Policy
If selected, Hassett is expected to reflect Trump’s emphasis on a more accommodative Fed posture. Investors have interpreted his potential nomination as a signal of future rate cuts or at least a decisive shift away from tighter policy.
Such expectations have shaped price action across Treasuries, equities, and rate-sensitive sectors, even before any formal announcement.
Senate Confirmation Remains The Final Step
Once President Trump unveils his nominee, the selection must clear a Senate confirmation process. Only after approval would the new Chair assume leadership when Powell’s term concludes in May.
For now, the White House is keeping the decision under wraps, but all indicators point to Kevin Hassett as the frontrunner, with markets already positioning for the policy implications of a potential Hassett-led Federal Reserve.