Trump stated that he will announce the Federal Reserve Chair nominee early next year, strongly hinting at Hassett

On Tuesday, U.S. President Donald Trump stated that he plans to announce the new chairman of the Federal Reserve in early 2026. Later that day, Trump hinted that National Economic Council Director Kevin Hassett might be his choice. Trump's latest remarks have intensified speculation about the next head of the Federal Reserve.

Trump said during a Cabinet meeting at the White House on Tuesday:

We will announce someone as the new Federal Reserve chairman early next year.

Trump's comments provided a clearer timeline for the announcement. Previously, U.S. Treasury Secretary Scott Basset, who is responsible for the selection process, indicated that the candidate could be announced as early as around Christmas.

Trump mentioned that after consulting with Basset and U.S. Secretary of Commerce Howard Lutnick, he had considered about ten candidates, and Basset had interviewed some candidates he was unaware of, narrowing the Federal Reserve chairman candidates down to one.

Sources told the media last week that National Economic Council Director Kevin Hassett is seen as the most likely candidate to succeed Jerome Powell. Trump also hinted at this shortly after the Cabinet meeting on Tuesday:

I guess there is a potential Federal Reserve chairman here. I don't know who qualifies to say the word 'potential.' I can tell you, he is a respected person. Thank you, Kevin.

However, Trump is known for making unexpected personnel and policy decisions, so nominations are not considered final until publicly announced. Other candidates who made it to the final list include Federal Reserve Governor Christopher Waller, Michelle Bowman, former Federal Reserve Governor Kevin Warsh, and Rick Reed from BlackRock.

For months, Trump has been pressuring the Federal Reserve to cut interest rates. The current Federal Reserve Chairman Powell's term will expire in May next year, and nominating someone to succeed Powell will give Trump his biggest opportunity yet to reshape the Federal Reserve. Trump has criticized Powell for being too slow and cautious in pushing for interest rate cuts and has suggested he wants his successor to advocate for cuts more forcefully.

Trump reiterated these criticisms on Tuesday, calling Powell a "stubborn mule who doesn't like your president very much." Although Powell's term as chairman will end next year, he can continue to serve on the board as a governor for another two years.

In September, Trump named Hassett, Warsh, and Waller as his top three candidates. Trump has also frequently stated that he hopes Basset will become the Federal Reserve chairman, but the Treasury Secretary has repeatedly rejected this notion.

Nominations for the Federal Reserve chairman and governors are typically the most direct way for a U.S. president to influence the Federal Reserve. However, Trump has publicly criticized the Federal Reserve for being too slow in its interest rate cuts and has also criticized the agency's expensive campus renovation projects. The White House is also involved in litigation regarding Trump's attempt to fire Federal Reserve Governor Lisa Cook.

Regardless of whom Trump ultimately chooses, Senate confirmation will be required. If the candidate comes from outside the Federal Reserve system, that person is likely to receive a 14-year term as a Federal Reserve governor effective from February 1 next year