President Donald Trump says his decision on the next Federal Reserve chair is final, fueling speculation that Kevin Hassett will take the post and begin shaping policy months before Jerome Powell’s term ends.
By yourNEWS Media Newsroom
President Donald Trump confirmed he has chosen his nominee to lead the Federal Reserve, telling reporters aboard Air Force One that an announcement is imminent. “I know who I am going to pick, yeah,” Trump told reporters while flying from Florida to Joint Base Andrews. Pressed on whether his choice is Kevin Hassett, a senior White House adviser and former chair of the Council of Economic Advisers, Trump smiled and said, “I’m not telling you, we’ll be announcing it.”
Hassett, widely viewed as the leading candidate, appeared on CBS and Fox News over the weekend and attempted to temper expectations, saying markets were responding mainly to the prospect of certainty. “Once it became clear that the president’s getting closer to making a decision, the markets really celebrated — interest rates went down, we had one of our best Treasury auctions ever,” he said. “If he picks me, I’d be happy to serve.”
If nominated this month, Hassett would effectively act as a “shadow Fed chair” for five months until Powell’s term concludes in May, according to analyst Mike Dolan. Trump has long signaled plans to replace Powell, and investors have been anticipating the shift as markets prepare for potential policy changes under new leadership.
Treasury Secretary Scott Bessent said recently that a nominee would likely be announced before Christmas. Bloomberg later reported that Hassett had moved ahead of Fed Governor Christopher Waller in the selection process, and betting markets quickly priced in a more than 50 percent likelihood of his appointment.
A Hassett-led Fed would sit atop a board increasingly shaped by Trump appointees. Alongside Stephen Miran and holdovers Waller and Michelle Bowman, a pending court case involving Governor Lisa Cook could soon create an additional vacancy. That would give Trump a potential 5–2 majority on the seven-member board, renewing debate about the central bank’s political independence.
Markets are already parsing the implications of Trump’s calls for aggressive rate cuts even as inflation remains above the Fed’s 2 percent target. Miran has endorsed cuts of up to three percentage points, while both Waller and Bowman have softened their earlier stance since Trump’s return to office. Analysts expect bond yields, equities, and the dollar to remain volatile as the leadership transition nears.
Hassett has taken an unusually public approach for a likely nominee, delivering speeches and interviews in recent weeks. He has supported continued rate reductions, described the Fed as “partisan,” and dismissed tariff-related inflation as temporary. He has also floated unconventional proposals, including 50-year mortgages, to stabilize housing costs.
A veteran conservative economist and co-author of Dow 36,000 in 1999, Hassett would inherit a central bank at a pivotal moment. As markets adjust to Trump’s impending announcement, investors are watching closely for signs of how sharply his choice might depart from Powell’s approach to monetary policy.
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