Washington, DC – President Donald Trump announced Sunday that he has settled on his pick to head the Federal Reserve (the US central bank). The president indicated that he expects the new nominee to implement interest rate cuts.
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“I know who I’m going to pick, yes. We’re going to announce it,” Trump told reporters aboard Air Force One on his way back to Washington.
This announcement comes amid sharp criticism from Trump of the current Federal Reserve Chairman, Jerome Powell, for failing to cut interest rates quickly enough. The president has indicated his desire for a chairman who will be more aggressive in lowering them. Powell’s term as chairman of the committee ends in May 2026.
Kevin Hassett in the spotlight
According to sources familiar with the matter who spoke to Bloomberg, Kevin Hassett is the likely candidate to succeed Powell. Hassett serves as director of the National Economic Council at the White House and is Trump’s chief economic advisor.
Hassett responded: Speaking on CBS’s “Face the Nation” earlier on Sunday, Hassett declined to confirm reports of his nomination, calling them “rumors.”
Implicit endorsement: Hassett pointed to the positive market reaction to news that Trump was close to making his selection. He saw this as refuting concerns about his close relationship with the president. He said, “We saw a great Treasury auction, and interest rates went down. I think the American people were expecting President Trump to choose someone who would help them get cheaper car loans and make it easier to get mortgages at lower interest rates.”
Trump sees Hassett as compatible with his desire to push for more aggressive rate cuts. While Hassett has stated he would accept the position if offered, analysts warn he may find it difficult to unify the Federal Reserve’s interest rate-setting committee.
Announcement date and other candidates
Although Trump is known for his last-minute changes, the prospect of Hassett’s nomination briefly pushed the yield on the 10-year US Treasury note below 4%.
Treasury Secretary Scott Bessent, who oversaw the selection process, said last week that Trump could announce his nominee before the Christmas holiday on December 25.
In addition to Hassett, the other finalists include: Christopher Waller (Federal Reserve Governor), Michelle Bowman (Federal Reserve Governor), Kevin Warsh (former Governor), and Rick Rider (of BlackRock).
Trump’s nominee would need Senate confirmation to chair the committee. If the nominee is from outside the Senate, they would likely serve a 14-year term as Federal Reserve governor beginning in February.
