 "(File) President Donald Trump listens as Federal Reserve Chairman Jerome Powell speaks during a visit to the Federal Reserve, Thursday, July 24, 2025, in Washington. AP")
US President Donald Trump said on Sunday (local time) he has finalised his choice for the next Federal Reserve chair, after repeatedly signalling that he expects the new appointee to deliver interest-rate cuts.
“I know who I am going to pick, yeah,” Trump told reporters aboard Air Force One as he returned to Washington, without revealing the name. “We’ll be announcing it.”
Hassett seen as leading contender
Trump has long criticised current Fed chief Jerome Powell for not lowering rates quickly enough and has made clear he wants a successor who will push harder for cuts. People familiar with the matter say White House National Economic Council Director Kevin Hassett — Trump’s top economic adviser — is viewed as the frontrunner to replace Powell.
Hassett downplays speculation
Appearing on CBS’ Face the Nation, Hassett declined to say whether he considers himself the favourite and called the speculation a “rumor.” Still, he pointed to positive market reaction to reports that Trump is close to announcing a pick — a nod to concerns among investors about his perceived closeness to the president.
“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,” Hassett said on CBS. “That’s what we saw in the market response to the rumor about me.”
Trusted by Trump, but questions remain
Trump is said to trust Hassett and views him as aligned with his preference for more aggressive rate cuts. Hassett has indicated he would accept the job if asked, though analysts warn he may struggle to unite the Fed’s rate-setting committee and could face stronger presidential pressure. His emphasis on market reaction was seen as an indirect counter to those concerns.
Market response and timing of announcement
Though Trump often shifts course at the last minute, expectations that Hassett could be nominated briefly pushed the 10-year Treasury yield below 4 per cent.
Treasury Secretary Scott Bessent, who is leading the selection process, said last week that Trump could unveil his nominee before Christmas on 25 December.
Other names in the mix
Alongside Hassett, other finalists include Fed governors Christopher Waller and Michelle Bowman, former Fed governor Kevin Warsh and BlackRock’s Rick Rieder. Trump also frequently says he would like Bessent to take the role, though Bessent has repeatedly dismissed the idea.
Confirmation process ahead
Whoever Trump selects will need Senate confirmation as chair and, if chosen from outside the Federal Reserve, would also likely receive a 14-year term as a Fed governor beginning in February. Powell’s term as chair ends in May.