Key Points
- President Trump said he has a preferred candidate to be the next Fed chair. He plans to make the announcement sometime in January.
- Trump renewed his attacks on current chair Jerome Powell, saying he “should resign.”
- The President wants a new leader who will aggressively cut interest rates.
- Powell’s term ends in May 2026, but he could stay on the Fed board until 2028.
President Trump hinted on Monday that he has already picked his favorite candidate to lead the Federal Reserve, but he is not ready to make it official just yet. Speaking at his Mar-a-Lago resort, Trump told reporters that he would make the announcement “in January sometime.” In the same breath, he ramped up his attacks on the current Fed chair, Jerome Powell, saying Powell “should resign” and that he would “love to fire him.”
This isn’t the first time the President has threatened to fire Powell. Trump came close to firing him back in July, but he backed down after the stock market reacted badly to the news. However, on Monday, Trump seemed to be reconsidering. “Maybe I still might,” he said, suggesting that Powell’s fate is still up in the air.
While Trump kept his top pick a secret, National Economic Council Director Kevin Hassett is widely seen as the frontrunner. Former Fed governor Kevin Warsh is another name that has been floating around.
The President has made it very clear what he wants in a new Fed chair: someone who will aggressively cut interest rates to help lower mortgage costs and keep the economy humming.
The Fed has already cut rates three times this year, but Trump doesn’t think that’s enough. Officials have signaled they might only cut rates once in 2026, which is far too slow for the White House. The President even mentioned that he is considering a lawsuit for “gross incompetence” against Powell over a renovation project at the Fed’s headquarters.
Powell’s term as chair ends in May 2026, but he can legally stay on the Fed’s Board of Governors until 2028. If he chooses to do so, it would block Trump from appointing another new member to the powerful board.
For now, the financial world is left to wonder who will lead the central bank and whether Powell will make it to the end of his term.
