Trump Selects New Fed Chair Amid Economic Uncertainty

WASHINGTON, D.C. — The selection of the next Federal Reserve chair is expected to be announced soon, as President Donald Trump has confirmed he knows whom he will choose but remains tight-lipped about the decision. National Economic Council Director Kevin Hassett is considered the leading candidate, following a recent report from Bloomberg News that identified him as the front-runner in the race to succeed Jerome Powell, whose term ends in May 2026.

Trump spoke to reporters aboard Air Force One, stating, “I know who I am going to pick, yeah. We’ll be announcing it.” He smiled when questioned about Hassett, adding, “I’m not telling you, we’ll be announcing it.” Hassett himself has also avoided directly addressing his potential appointment during recent media appearances.

On CBS’s “Face the Nation,” Hassett expressed gratitude for being among the group of strong candidates, noting that the markets reacted positively to news of his emerging as a favorite. “Americans could expect President Trump to pick somebody who’s going to help them, you know, have cheaper car loans and easier access to mortgages at lower rates,” he said.

Hassett mentioned on Fox News that he would be happy to serve if selected. Prediction markets have assigned a 79% probability to Hassett’s chances of becoming the next Fed chair, significantly higher than other candidates.

The upcoming Fed chair will face a complex economic landscape, balancing the need for potential interest rate cuts with inflation concerns. The next rate decision is scheduled for December 9-10, with futures market traders currently suggesting an 87.6% chance of a rate cut.

In response to the search for the next Fed chair, Treasury Secretary Scott Bessent emphasized the need for a re-evaluation of the Fed’s mission. Bessent criticized the current complexity of monetary policy and stressed that the Fed should prioritize a clearer, more effective approach to its role in the economy.

He highlighted the importance of the contributions of regional presidents, noting that their public commentary can often influence markets. Concerning the future of the Fed, Mohamed El-Erian, Allianz‘s chief economic advisor, echoed Bessent’s views, calling for a reform of the institution to enhance its effectiveness in serving the global economy.