Who is Trump's pick for next Fed chair?
What's the story
President Donald Trump has announced that he has chosen his nominee for the next chair of the Federal Reserve, the United States' central bank. The decision comes as a push toward deeper interest-rate cuts, something Trump has long advocated. The announcement is expected soon and follows months of public criticism directed at current Fed Chair Jerome Powell. The Fed Chair is one of the most powerful economic positions in the world, responsible for setting US monetary policy.
Potential nominee
Kevin Hassett: The likely frontrunner
The leading candidate for the position is White House National Economic Council Director Kevin Hassett. Trump sees Hassett as closely aligned with his push for more aggressive monetary easing. However, this choice could raise questions about the independence of the central bank. Despite not confirming his front-runner status on CBS's Face the Nation, Hassett acknowledged that financial markets have reacted positively to speculation about his potential nomination.
Market reaction
Hassett's stance on market response and potential nomination
Hassett said the public reaction to speculation about his potential nomination indicates that investors expect Trump to choose someone who would lower borrowing costs. He also expressed hope that a future Fed chair would help Americans access cheaper car loans and mortgages. Trump trusts Hassett and sees him as supportive of deeper rate cuts, although he may face challenges uniting the Federal Open Market Committee.
Nomination process
Other potential candidates and nomination timeline
Other potential candidates for the Fed chair position include Fed governors Christopher Waller and Michelle Bowman, former governor Kevin Warsh, and BlackRock executive Rick Rieder. Treasury Secretary Scott Bessent, who is overseeing the selection process, said Trump could announce his nominee before Christmas. Whoever is chosen will need Senate confirmation. The Chair serves a four-year term, separate from their term as a Governor (which is 14 years). They can be renominated multiple times.