Trump Sets Early 2026 Date for Fed Chair Pick
President Signals a Faster Rate-Cutting Approach With New Leadership
Key Takeaways:
- President Donald Trump said he will announce his pick for the next Federal Reserve chair in early 2026, clarifying the timing of a closely watched decision.
- The choice will determine the successor to Jerome Powell, whose term ends in May, and comes as Trump pressures the Fed to cut rates more aggressively.
- The White House continues vetting finalists, and the nominee will require Senate confirmation, with an outsider likely receiving a 14-year governor term starting Feb. 1.
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President Donald Trump said he plans to announce his selection to lead the Federal Reserve in early 2026, fueling further speculation about the next leader of the U.S. central bank.
“We’ll be announcing somebody, probably early next year, for the new chairman of the Fed,” Trump said Dec. 2 during a Cabinet meeting at the White House.
Trump’s comments offer a clearer timeline for the announcement. Treasury Secretary Scott Bessent, who has beenoverseeingthe selection process, previously said the pick could be revealed around Christmas.
The president on Nov. 30 told reporters he knew who he would nominate, without offering further details.
Trump for months has pressured the Fed to lower interest rates, and naming a successor to Jerome Powell, whose term as Fed Chair expires in May, would give the president his biggest chance yet to reshape the institution. Trump has criticized Powell as being too slow and timid in pursuing cuts, and the president has signaled he expects his replacement to move more forcefully to lower rates.
Trump repeated those criticisms Dec. 2, calling Powell a “stubborn ox, who probably doesn’t like your president.” Though Powell’s term as chair ends next year, he could remain on the board for two more years as a governor.
White House National Economic Council Director Kevin Hassett is seen as thelikely choiceto succeed Powell, people familiar with the matter told Bloomberg News last week.
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Still, Trump is known to make surprise personnel and policy decisions, meaning a nomination is not final until it’s made public. Other finalists have included Fed Governors Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh and BlackRock’s Rick Rieder.
Trump in September singled out Hassett, Warsh and Waller as his top three candidates. Trump also regularly says he’d like Bessent as chair, though the Treasury secretary has repeatedly rejected the notion.
Fed chair and governor picks typically represent the most direct way for presidents to influence the central bank. But Trump has been vocal in criticizing the Fed for moving too slowly to cut borrowing costs and for expensive renovations of its campus. The White House also is engaged in litigation over Trump’s attempted dismissal of Fed Governor Lisa Cook.
Whomever Trump picks will require Senate confirmation as chair. If the selection is an outsider, the person would likely receive a 14-year Fed governor term that begins Feb. 1.
