US President Donald Trump said he will announce his choice for the next Chair of the Federal Reserve “next week”, ending weeks of speculation over who will succeed Jerome Powell, whose term is set to expire in May 2026.
Speaking at a Cabinet meeting on Thursday, Trump said the nominee would be someone he believes will “do a good job” leading the US central bank.
“We’re going to be announcing next week,” Trump said. “And it’ll be a person that will, I think, do a good job.”
The announcement is expected to have major implications for US monetary policy, financial markets and interest rate decisions.
Trump Criticises Fed Interest Rates
Trump’s remarks came a day after the Federal Reserve held its benchmark interest rate steady in the range of 3.5% to 3.75%, citing economic activity expanding at a “solid” pace.
The president sharply criticised the decision, calling current interest rates “too high.”
“They’re unacceptably high,” Trump said. “We should have the lowest interest rate anywhere in the world. They should be two points and even three points lower.”
Trump has repeatedly clashed with Powell over the Fed’s cautious approach to rate cuts.
Senate Confirmation Required
Whoever Trump selects will need to be confirmed by the US Senate, a process that could spark intense political debate given the Fed’s independence and Trump’s outspoken views on monetary policy.
Top Contenders to Replace Jerome Powell
Several high-profile names have emerged as frontrunners for the top job.
Kevin Warsh, Former Federal Reserve Governor
Kevin Warsh served as a Federal Reserve governor from 2006 to 2011. According to the BBC, he has been a vocal critic of the Fed’s reliance on economic data and its large balance sheet. Though once known as a policy hawk favouring higher interest rates, Warsh is now seen as more supportive of rate cuts in the near term.
Kevin Hassett, White House National Economic Director
Kevin Hassett, 63, is a veteran conservative economist and a close economic adviser to Trump. A loyal supporter of the president, Hassett has consistently defended Trump’s economic policies and echoed claims of bias at the Bureau of Labor Statistics. His proximity to Trump and alignment with his economic views make him a leading contender.
Christopher Waller, Current Fed Governor
Christopher Waller, a current Fed governor nominated by Trump in 2020, has recently said the central bank has room to lower interest rates further a stance aligned with Trump’s preferences. However, reports suggest he may lack the personal political connections that could place him at the top of Trump’s list.
Rick Rieder, BlackRock Executive
Rick Rieder, a senior executive at BlackRock, has drawn Trump’s attention with proposals to reform the Federal Reserve, according to Bloomberg. Unlike the other contenders, Rieder has never worked at the Fed, a factor that could appeal to Trump as he looks for an outsider to challenge the institution’s traditional approach.
Trump’s announcement next week is expected to clarify the future direction of the US Federal Reserve at a time when interest rates, inflation and economic growth remain key political and economic issues ahead of the 2026 transition.
Sofia Babu Chacko is a journalist with over five years of experience covering Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes that every voice matters, and journalism has a vital role to play in amplifying those voices. Sofia is committed to creating impact and shedding light on stories that truly matter. Beyond her work in the newsroom, she is also a music enthusiast who enjoys singing.
