Trump hinted that he already has a candidate in mind for the next chair of the Federal Reserve but is not in a rush to make an announcement, which may come in January. He again mentioned the possibility of dismissing the current Fed Chair, Powell, and stated he is considering filing a lawsuit against Powell for 'gross incompetence' regarding an ongoing renovation project by the Federal Reserve.
On Monday local time, U.S. President Trump hinted that he already had a preferred candidate in mind for the next chair of the Federal Reserve but was not in a rush to make an announcement. He also reiterated that he might consider dismissing the current Federal Reserve Chair Jerome Powell.
Trump stated that he would announce his choice for the Fed Chair at an appropriate time, emphasizing there was plenty of time and suggesting it could happen in January when naming a successor to Powell.
Yes, I do have one, and I still do. That hasn't changed. I will announce it at the right moment, as there is ample time now.
Trump did not disclose his top candidate but indicated that the decision would be announced sometime in January.
On Monday, Trump also mentioned considering legal action against Powell for 'gross incompetence' regarding an ongoing renovation project at the Federal Reserve. Trump remarked that Powell 'should resign' and openly stated that he 'would really like to fire him.' Speaking to reporters at Mar-a-Lago in Florida, he said, 'Maybe I still can do this now.'
Currently, Kevin Hassett, Director of the National Economic Council, is considered one of the leading contenders for the next Fed Chair. However, Trump has also expressed interest in former Federal Reserve Governor Kevin Warsh. Other candidates reportedly under consideration include current Fed Governors Christopher Waller and Michelle Bowman, as well as Rick Rieder from BlackRock.
Trump has repeatedly made vague and even contradictory statements regarding the decision-making process for the new Federal Reserve Chair. Earlier this month, he claimed the field of candidates had been narrowed down to one person, but later stated he was still evaluating multiple candidates while praising several individuals on the shortlist.
Trump has long criticized Powell, whom he appointed as Fed Chair during his first term. Trump has made clear that he wants the next chair to adopt more aggressive rate cuts to help lower mortgage costs for the White House's housing agenda.
Powell's term as Fed Chair will conclude in May 2026, while his tenure as a member of the Federal Reserve Board extends until 2028.
Editor/Stephen