Key Points
- President Donald Trump says he has chosen a nominee to succeed Jerome Powell as Fed Chair.
- Announcement expected by late December, with Kevin Hassett, Kevin Warsh, and Christopher Waller seen as frontrunners.
- Hassett’s alignment with Trump’s push for aggressive rate cuts makes him the leading candidate.
- Warsh offers a hawkish alternative, while Waller represents continuity and institutional stability.
- Treasury Secretary Scott Bessent suggests a decision could come before Christmas.
Trump Signals Fed Chair Decision
The race to succeed Federal Reserve Chair Jerome Powell is intensifying as President Donald Trump revealed he has already selected his nominee, though the name has not yet been made public. The announcement is expected by the end of December, setting the stage for a pivotal shift in U.S. monetary policy.
Kevin Hassett: The Frontrunner
National Economic Council Director Kevin Hassett is widely viewed as the leading contender. Market analysts and Bloomberg reports highlight his support for aggressive interest rate cuts, a stance closely aligned with Trump’s economic agenda.
Hassett has indicated he would accept the role if offered. However, some economists caution that his proximity to the White House could raise concerns about the Federal Reserve’s independence.
Read More: Parkway Drive Cancels 2026 Australian Park Waves Festival Tour
Kevin Warsh: The Hawkish Alternative
Former Fed Governor Kevin Warsh is another prominent candidate. With experience on Wall Street and at the central bank under President George W. Bush, Warsh is respected for his role in managing the 2008 financial crisis.
His more conservative approach to interest rates, however, may not align with Trump’s preference for rapid cuts, potentially limiting his appeal.
Christopher Waller: The Continuity Candidate
Current Fed Governor Christopher Waller represents stability and institutional continuity. Waller has supported recent rate cuts in response to weakening labor market data but remains focused on price stability. His moderate stance occasionally diverges from Trump’s demands, positioning him as a balanced option.
Decision Timeline
Treasury Secretary Scott Bessent, who is overseeing the selection process, has indicated that a decision could be announced before Christmas. The appointment will have far-reaching implications for interest rates, inflation management, and financial stability in the years ahead.
Read More: Nvidia Invests $2 Billion in Synopsys to Advance AI Engineering Collaboration
What Happens Next
With three candidates offering sharply different perspectives, the choice of Fed Chair will set the tone for U.S. monetary policy well into the next decade. Markets are bracing for the announcement, which could influence investor confidence and shape the trajectory of the American economy.
