President Donald Trump has announced that he has already chosen who he wants to lead the Federal Reserve after Chair Jerome Powell’s term ends in May 2026. While Trump has not yet revealed the name, he says the public will find out soon.
The president made the announcement while speaking with reporters aboard Air Force One on November 30. When asked directly if he would pick Kevin Hassett—the current head of the National Economic Council and a top favorite according to betting markets—Trump only smiled and declined to answer.
Trump originally appointed Powell in 2017 when he was first in office. But over the last few months, Trump has become more vocal in his criticism of Powell. The president believes Powell has failed to lower interest rates quickly enough, even though inflation has dropped a great deal from its peak in 2022. At that time, prices were rising at an annual rate of 9 percent. Now, inflation is much lower, but the Federal Reserve has kept interest rates relatively high.
High interest rates make it more expensive to borrow money. That can slow down the economy, which is already showing signs of weakness. Job growth has slowed, and consumer confidence has dropped. Trump has said that the Fed is hurting the economy by not cutting rates fast enough. “He’s done a terrible job,” Trump said of Powell during a recent meeting with reporters in the Oval Office. “Frankly, I would love to get the guy currently in there out right now, but people are holding me back.”
The Federal Reserve has reduced interest rates twice recently—once in September and again in October—bringing the key rate down to between 3.75 and 4 percent. But that may not be enough to satisfy Trump or to give the economy the boost he wants. The decision about whether to cut rates again in December remains uncertain. Market analysts believe there is a high chance—about 88 percent—that rates will be cut again. However, not all Fed officials agree, and some are worried that inflation might return if they move too quickly.
As Powell’s term nears its end, attention has shifted to who might replace him. Treasury Secretary Scott Bessent has said that Trump has narrowed the list of possible candidates to five people. Besides Hassett, the group includes BlackRock executive Rick Rieder, former Fed Governor Kevin Warsh, and two current Fed Board members—Michelle Bowman and Christopher Waller.
Among these, Kevin Hassett is the most likely pick according to prediction markets. He currently has a 72 percent chance of being the next Fed chair. Warsh and Waller are tied at 11 percent, Rieder stands at 13 percent, and Bowman trails at just 1 percent.
Hassett has not confirmed that he is the president’s pick. Instead, he has focused on how the markets have responded since Trump signaled he was nearing a decision. In recent interviews, Hassett said that interest rates in the market have already gone down and that the Treasury Department held one of its most successful bond auctions in years. That suggests investors expect a more market-friendly leader at the Fed.
“If he picks me, I’d be happy to serve,” Hassett said in an interview on Fox News. He also said that any pick made by Trump will likely focus on making loans cheaper for everyday Americans—whether it’s for a car, a home, or a small business.
The Federal Reserve plays a key role in managing the U.S. economy. Its main job is to keep inflation under control while also promoting job growth. The person leading the Fed has a powerful influence over interest rates, which affect everything from home loans to credit cards.
Trump’s choice will shape economic policy at a time when Americans are feeling the pinch of high prices and slower growth. This decision also has political weight, especially as the president prepares for key legislative and budget battles in 2026. The next Fed chair will be central to how the administration handles these challenges—and how voters judge the results.
