U.S. President Donald Trump is rushing to nominate the next Federal Reserve (Fed) chair. Incumbent Chair Jerome Powell's term runs until May 2026, but the outline of a new chair could emerge as early as early next month, before the Christmas holiday.
Bloomberg reported on the 25th (local time), citing sources, that Kevin Hassett, White House National Economic Council (NEC) Chairperson, has emerged as the frontrunner in the race for the next Fed chair.
Hassett is Trump's closest economic confidant. During Trump's first term, he served as Chairperson of the White House Council of Economic Advisers (CEA). He is also seen as well-suited for the Trump administration's desired "additional rate cuts." Trump has long argued that the Fed should be under administration control. He has steadily sought someone who would reflect his calls for rate cuts in policy instead of Chair Powell.
Hassett is a leading dove within the Trump administration on monetary policy easing. In a recent Fox News interview, he said, "If I were the Fed chair, I would cut rates immediately as the data indicate." Markets expect that if Hassett is nominated, the Fed's monetary policy will turn much more accommodative than it is now.
Trump plans to appoint a new Fed chair within the year. U.S. Treasury Secretary Scott Bessent said in a CNBC interview the same day that "there is a very good chance President Trump will announce the new chair before Christmas."
Bessent is overseeing the current selection process for the Fed chair. He said, "We have finished first-round interviews and are conducting second-round interviews with five finalists," adding, "We still have an interview left with one candidate, but the process is going very smoothly."
The current shortlist includes Chairperson Kevin Hassett; former Fed governor Kevin Warsh; Fed Governor Christopher Waller; Fed Governor Michelle Bowman; and Wall Street heavyweight Rick Rieder, BlackRock chief investment officer (CIO).