US President Donald Trump said Sunday that he has chosen his pick for the next Federal Reserve chair, after repeatedly saying he wants someone who will push for interest-rate cuts.
“I know who I’m going to pick,” Trump told reporters on Air Force One as he flew back to Washington. He did not share any names, adding only: “We’ll be announcing it.”
Trump has often criticised current Fed Chair Jerome Powell for not cutting rates fast enough. Bloomberg News reported last week that Kevin Hassett — head of the White House National Economic Council and one of Trump’s top economic advisers — is widely viewed as the leading candidate to replace Powell.
Earlier on Sunday, Hassett appeared on CBS’ Face the Nation and avoided saying whether he believes he is the frontrunner. He dismissed the speculation as “just a rumour,” but noted that financial markets reacted positively after reports suggested Trump was close to choosing his nominee. Hassett pointed to a strong Treasury auction and falling interest rates, saying Americans could expect Trump to pick someone focused on lowering borrowing costs for car and home loans.
According to Bloomberg, Trump trusts Hassett and believes they share the same approach on pushing the Fed toward sharper rate cuts. While Hassett is willing to take the job, analysts warn he may struggle to unite the Fed’s rate-setting committee and could face heavy pressure from Trump. His focus on market reaction was seen as an indirect response to those concerns.
Even the possibility of Hassett’s nomination briefly pushed the 10-year Treasury yield below 4%. Trump is known for reconsidering decisions until the last moment, but he is expected to reveal his final choice before Christmas, Treasury Secretary Scott Bessent said last week.
Besides Hassett, other contenders include Fed governors Christopher Waller and Michelle Bowman, former Fed governor Kevin Warsh, and BlackRock executive Rick Rieder. Trump has also mentioned Bessent as a potential pick, though Bessent has repeatedly said he is not interested.
Whoever Trump chooses will need Senate approval — both for the role of chair and, if the nominee comes from outside the Fed, for a new 14-year term as a governor beginning in February. Powell’s term as chair ends in May.
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