Tensions between Donald Trump and Federal Reserve Chair Jerome Powell continue to simmer as the US president drops fresh hints about who might lead the central bank once Powell's term expires in May next year.
During a Cabinet meeting at the White House on Tuesday, Trump unexpectedly acknowledged the presence of what he called a “potential Fed chair” among the attendees. “I guess a potential Fed chair is here too,” he said. “I don't know who is allowed to say that — potential. He's a respected person that I can tell you. Thank you, Kevin.”
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Attention quickly shifted to Kevin Hassett, Director of the National Economic Council, who is widely viewed as one of Trump's top contenders for the job.
Speaking during the same meeting, Trump added that the official announcement on Powell's successor would likely come “early next year,” according to Bloomberg. The timeline contrasts with earlier suggestions from Treasury Secretary Scott Bessent, who recently said an announcement could come by Christmas.
Trump further revealed that Bessent “does not want the job,” signalling a shift after the president had previously floated him as a potential pick.
The latest comments come just days after Trump told reporters aboard Air Force One that he had already made his decision on the next Fed chair, though he declined to name the candidate. Asked whether Hassett would be chosen, Trump said only, “I'm not telling you. We will be announcing it.”
Hassett himself offered a cautious response to the speculation in an interview with CBS, emphasising that Americans could expect Trump to select someone focused on lowering borrowing costs and expanding access to credit. His tone, analysts say, only adds to the impression that he is a frontrunner.
But Hassett is not the only name in circulation. Former Federal Reserve governor Kevin Warsh and current Fed board member Christopher Waller are also seen as strong possibilities. Other figures mentioned in Washington circles include Federal Reserve Vice Chair Michelle Bowman and BlackRock's Rick Rieder.
Powell's relationship with Trump has long been fraught, and the president has signalled repeatedly that he plans to install a new chair. With monetary policy dominating economic and political debates ahead of the 2025 cycle, the choice of the next Fed chief will carry significant implications for markets, interest rates, and the administration's agenda.
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