US President Donald Trump has announced that he has chosen a new chair for the Federal Reserve but has not yet revealed the identity of the selected candidate. Trump expressed frustration over his inability to immediately replace the current Fed chair, Jerome Powell, stating to reporters that he would be pleased to remove him right now, but his advisors are obstructing such a move. Treasury Secretary Scott Bassett, overseeing the selection process, plans to present official recommendations after Thanksgiving.
The list of potential candidates has been narrowed down to five individuals, including Fed Governors Christopher Waller and Michelle Bowman, former board member Kevin Warsh, National Economic Council Director Kevin Hassett, and BlackRock CEO Rick Rieder. Trump indicated that the list includes both conventional candidates well-known to the market and some unexpected names, adding that the administration might either take a conservative approach or exhibit creativity in its choice.
The selected candidate will replace Powell, whom Trump has repeatedly criticized for not lowering interest rates quickly enough. Powell’s term as chair is set to end in May 2026. However, his board membership is extended until 2028. Trump reiterated his interest in appointing Bassett as Fed chair, but the Treasury Secretary prefers to remain in his current position, complicating that prospect.
The decision on new leadership at the Federal Reserve will have significant implications for US monetary policy. The new chair will determine the direction of interest rates, inflation policy, and financial system regulation for the coming years.
