President Donald Trump said he has chosen his nominee for the next Federal Reserve chair, signalling a shift toward deeper interest-rate cuts that he has long demanded. Speaking to reporters on Air Force One while returning to Washington, Trump confirmed, “I know who I am going to pick, yeah. We’ll be announcing it.”
The announcement is expected soon, and the decision comes after months of public criticism of current Fed Chair Jerome Powell, whom Trump has repeatedly faulted for not lowering rates fast enough.
The likely frontrunner is White House National Economic Council Director Kevin Hassett, people familiar with the process told Bloomberg. Trump views Hassett as closely aligned with his push for more aggressive monetary easing, though the choice could face questions about independence at the central bank.
Earlier on Sunday, Hassett appeared on CBS’ Face the Nation. While he did not confirm whether he is leading the race, he acknowledged the positive reaction from financial markets to speculation about his potential nomination. Calling the discussion a “rumor,” Hassett said the public response suggests investors expect Trump to choose someone supportive of lower borrowing costs.
“We had a great Treasury auction, interest rates went down and I think that the American people could expect President Trump to pick somebody who’s going to help them have cheaper car loans and easier access to mortgages at lower rate,” he said on CBS. “That’s what we saw in the market response to the rumor about me.”
People aware of internal conversations say Trump trusts Hassett and sees him as supportive of deeper rate cuts. Hassett has indicated he would accept the role if asked. Analysts, however, have noted that he may face challenges uniting the Federal Open Market Committee and could be more exposed to presidential pressure. His remarks on market reaction appeared aimed at easing those concerns.
The prospect of Hassett’s nomination briefly pushed the 10-year Treasury yield below 4% last week.
Treasury Secretary Scott Bessent, who is overseeing the selection process, said Trump may announce his nominee before the Christmas holiday. Other finalists under consideration include Fed governors Christopher Waller and Michelle Bowman, former governor Kevin Warsh and BlackRock executive Rick Rieder. Trump has also mentioned Bessent as an option, though Bessent has rejected the idea.
Whoever is selected will require Senate confirmation and, if chosen from outside the central bank, would serve a 14-year term starting in February. Powell’s term as chair ends in May.
The announcement is expected soon, and the decision comes after months of public criticism of current Fed Chair Jerome Powell, whom Trump has repeatedly faulted for not lowering rates fast enough.
The likely frontrunner is White House National Economic Council Director Kevin Hassett, people familiar with the process told Bloomberg. Trump views Hassett as closely aligned with his push for more aggressive monetary easing, though the choice could face questions about independence at the central bank.
Earlier on Sunday, Hassett appeared on CBS’ Face the Nation. While he did not confirm whether he is leading the race, he acknowledged the positive reaction from financial markets to speculation about his potential nomination. Calling the discussion a “rumor,” Hassett said the public response suggests investors expect Trump to choose someone supportive of lower borrowing costs.
“We had a great Treasury auction, interest rates went down and I think that the American people could expect President Trump to pick somebody who’s going to help them have cheaper car loans and easier access to mortgages at lower rate,” he said on CBS. “That’s what we saw in the market response to the rumor about me.”
People aware of internal conversations say Trump trusts Hassett and sees him as supportive of deeper rate cuts. Hassett has indicated he would accept the role if asked. Analysts, however, have noted that he may face challenges uniting the Federal Open Market Committee and could be more exposed to presidential pressure. His remarks on market reaction appeared aimed at easing those concerns.
The prospect of Hassett’s nomination briefly pushed the 10-year Treasury yield below 4% last week.
Treasury Secretary Scott Bessent, who is overseeing the selection process, said Trump may announce his nominee before the Christmas holiday. Other finalists under consideration include Fed governors Christopher Waller and Michelle Bowman, former governor Kevin Warsh and BlackRock executive Rick Rieder. Trump has also mentioned Bessent as an option, though Bessent has rejected the idea.
Whoever is selected will require Senate confirmation and, if chosen from outside the central bank, would serve a 14-year term starting in February. Powell’s term as chair ends in May.
