President Donald Trump has publicly stated that he has decided who will replace Jerome Powell as chair of the Federal Reserve. Though he stopped short of naming the successor, Trump made clear he “knows who I’m going to pick,” setting the stage for a major shift in U.S. monetary leadership ahead of Powell’s term ending in May 2026.
Trump Confirms He’s Made His Choice
While aboard Air Force One, Trump told reporters he has settled on a nominee, but declined to confirm a name. He said the announcement will come soon, fueling speculation across financial markets and Washington circles.
Despite the lack of a formal name drop, most eyes now point toward Kevin Hassett, director of the White House National Economic Council, who is widely viewed as the front-runner. Hassett has openly said he would be “happy to serve” if selected — signaling readiness, but not final confirmation.
Why All Eyes Are on Kevin Hassett
Hassett has surged ahead in betting and prediction markets, making him the clear favorite among the handful of finalists reportedly under consideration. The list also includes Fed governors such as Christopher Waller, former governor Kevin Warsh, and other figures. But Hassett’s close alignment with the administration’s push for lower interest rates has made him the standout pick.
What a Transition Could Mean for Monetary Policy
A new Fed chair aligned with Trump’s policy goals could steer the central bank toward more aggressive interest-rate cuts than under Powell. That shift could lower borrowing costs for mortgages and loans — a possible boon for homeowners and borrowers. On the flip side, some financial experts warn such direction could jeopardize the Fed’s independence and raise long-term inflation risks.
What Happens Next — And When
Trump has not yet named the official nominee. The formal announcement could come within the next few weeks, possibly before the Christmas holiday. Once he does, the Senate will begin confirmation proceedings. In the meantime, markets and policymakers will likely scrutinize any public comments by potential candidates, especially if those comments hint at future rate policy shifts.
What This Could Mean for You & the Economy
If the new chair prioritizes rate cuts, consumers might see lower interest rates on mortgages and loans. That could encourage homebuying, spending, and investment activity — but also increase inflation pressures over time. Savvy investors, homeowners, and policymakers will be watching closely as the transition unfolds.
Stay tuned — the countdown to a new Fed chapter is on.
