Trump Muses About Ousting Powell as Fed Pick Nears
Central Bank Leadership in Focus as Term End Looms
Key Takeaways:
- Trump said Dec. 29 he has a preferred Fed chair pick but is not rushing an announcement and again suggested he could fire Chair Jerome Powell.
- He said he may announce a nominee in January, with Kevin Hassett seen as a frontrunner among several candidates.
- Trump renewed criticism of Powell and said he wants rate cuts and is considering a lawsuit, as Powell’s chair term ends in May 2026.
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President Donald Trump teased that he has a preferred candidate to be the next chair of the Federal Reserve but is in no hurry to make an announcement — while also musing that he might fire the central bank’s current leader, Jerome Powell.
“I do, still do — hasn’t changed,” Trump said at a press conference Dec. 29, when asked if he has a favorite candidate. “I’ll announce him at the right time. There’s plenty of time.”
Trump added that Powell “should resign and that he’d “love to fire him.”
“Maybe I still might,” Trump told reporters at his Mar-a-Lago resort in Florida.
Trump did not specify who is his leading chair candidate and said an announcement would be made in “January sometime.”
National Economic Council Director Kevin Hassett has been seen as the frontrunner, though Trump has also expressed interest in former Fed governor Kevin Warsh. Other finalists in the process have included current Fed governors Christopher Waller and Michelle Bowman and BlackRock’s Rick Rieder.
Trump has made numerous cryptic — and sometimes contradictory — remarks about his decision-making process regarding the new central bank chief. The president earlier in December said he’d narrowed the pool of contenders down to one, but subsequently said he was considering multiple candidates and has heaped praise on several of the names on the short list.
Trump has long been a critic of Powell, who he picked to lead the central bank during his first term. The president has indicated he wants the next chair to more aggressively cut interest rates as the White House looks to lower mortgage costs.
He said Dec. 29 he was considering a “gross incompetence” lawsuit against Powell related to an ongoing renovation project at the Fed. Powell’s term as chair is set to end in May of 2026, but his term on the Fed’s Board of Governors doesn’t expire until 2028.
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