Trump Says Fed Chair Decision Made as Markets Bet on Hassett

President Donald Trump confirmed Sunday that he has selected his nominee for the next Federal Reserve chair, signaling a decisive shift in the central bank’s leadership as he pushes for more aggressive interest-rate cuts. 

Speaking aboard Air Force One on his return to Washington, Trump declined to identify his pick but indicated the announcement is imminent. “I know who I am going to pick, yeah,” he told Bloomberg reporters. “We’ll be announcing it.”

The decision comes as Trump continues his criticism of current Fed Chair Jerome Powell, whose term ends in May. Trump has routinely faulted Powell for not lowering rates fast enough, framing the next chair as essential to delivering cheaper borrowing costs for consumers and businesses.

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Kevin Hassett Seen as the Frontrunner

According to people familiar with the selection process, Kevin Hassett — Trump’s chief economic adviser and director of the White House National Economic Council — is viewed internally as the leading candidate. 

Hassett has long been aligned with Trump on economic policy, especially the push for more forceful rate reductions.

Speaking on CBS earlier Sunday, Hassett brushed aside reports naming him as the frontrunner, calling them “rumors.” But he also highlighted the market’s favorable reaction to speculation about his possible nomination, subtly reinforcing his credibility.

“We had a great Treasury auction, interest rates went down and I think that the American people could expect President Trump to pick somebody who’s going to help them have cheaper car loans and easier access to mortgages at lower rate,” Hassett said. 

“That’s what we saw in the market response to the rumor about me.”

Market Reaction and Concerns Over Fed Independence

The possibility of Hassett leading the central bank briefly pushed the 10-year Treasury yield below 4%, as investors priced in a more dovish Fed under his leadership. 

Analysts, however, warn that Hassett could face challenges uniting the Federal Open Market Committee behind aggressive policy moves, given his close political ties to Trump.

Critics have raised concerns about the potential erosion of the Fed’s hallmark independence, noting that Hassett may be more vulnerable to pressure from the White House. His emphasis on market support Sunday served as an implicit rebuttal to those worries.

Still, people close to the process say Trump trusts Hassett deeply and views him as aligned with his pro-growth, pro-stimulus approach. Hassett has also indicated privately that he would accept the role if nominated.

Other Finalists Still in the Running

Despite Hassett’s positioning, several other candidates remain under active consideration. They include Fed Governors Christopher Waller and Michelle Bowman, both respected voices within the central bank; former Fed governor Kevin Warsh; and Rick Rieder, BlackRock’s influential chief investment officer for global fixed income.

Treasury Secretary Scott Bessent, who has overseen the vetting process, said last week that Trump could name his nominee before Christmas. Trump has also joked about choosing Bessent himself, though Bessent has consistently rejected the idea.

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A High-Stakes Appointment Ahead of 2026

Whoever Trump selects will require Senate confirmation, a process expected to intensify given the stakes. If Trump chooses an outsider to replace Powell, the nominee would serve a new 14-year term as a Federal Reserve governor beginning in February.

The next chair will oversee monetary policy at a pivotal moment as inflation cools and markets anticipate a shift toward rate cuts in 2026. Trump’s choice will shape the direction of U.S. interest-rate policy for years to come — and for now, momentum appears to be building around Kevin Hassett as the preferred pick.