Unlock the White House Watch newsletter for free
Your guide to what Trump’s second term means for Washington, business and the world
Donald Trump said he would announce his pick to lead the Federal Reserve “early next year”, prolonging the uncertainty over Jay Powell’s replacement as US central bank chair after a selection process that has lasted for months.
The president was speaking during a televised cabinet meeting on Tuesday, just days after claiming he had already decided who would succeed Powell at the end of his term in May 2026.
“We’ll be announcing somebody probably early next year for the new chairman of the Fed,” said Trump, after calling Powell a “stubborn ox” for not reducing interest rates more rapidly, his most common criticism of the US central bank.
Interviews are expected to take place with senior administration officials, including Trump and vice-president JD Vance, over the coming weeks. The administration had previously signalled the nomination could come before Christmas.
Kevin Hassett, the director of the National Economic Council at the White House, is considered the frontrunner. Asked by a reporter on Sunday if his preferred candidate was Hassett, Trump smirked but declined to comment. Betting odds rose swiftly in favour of Hassett winning the nomination after the exchange.
But Trump declined to endorse Hassett on Tuesday. Instead, he said he wanted Scott Bessent, the US Treasury secretary who is running the Fed chair selection process, to take the top job.
“I talked to Scott about taking the job, but he doesn’t want it,” Trump said. The president has previously said he wanted Bessent to take the position.
Clashes between the central bank and the Trump administration increased over the summer when the president tried to fire Fed governor Lisa Cook over allegations she had engaged in mortgage fraud.
Cook has denied the allegations and is now suing the president in a landmark case that will test the limits of the central bank’s ability to set interest rates free from White House pressure.
Powell may stay on as governor until January 2028 after his term as chair ends in May 2026. Hassett’s nomination would need Senate approval. He could take the seat of Stephen Miran, another ally of the president, who is expected to step down from the Fed board early next year.
Credit: Source link
