Trump announces his choice for the next Federal Reserve chair

President Donald Trump has revealed that he has made a decision regarding his choice for the next Federal Reserve chair, though the identity of the nominee remains a secret. Speaking to reporters on Sunday, Trump stated, I know who I am going to pick, yeah. When pressed for details, he added, Im not telling you. Well be announcing it.

The individual selected by Trump is expected to advocate for quicker and more aggressive interest rate cuts compared to the current Fed Chair, Jerome Powell, whose term ends in May. Over the past five months, Trump has repeatedly criticized Powell, claiming that the Fed has been too cautious in reducing rates and stimulating economic growth.

Kevin Hassett, director of the White House National Economic Council, is considered the leading candidate. On Sunday, Hassett downplayed speculation but told Fox News he would be willing to accept the role if asked. He also highlighted favorable market reactions to his potential appointment as proof that investors are not concerned about his proximity to the president undermining Fed independence. Once it became clear that the president's getting closer to make a decision, the markets really celebrated, interest rates went down, we had one of our best treasury auctions ever, Hassett said. The market expects that there's going to be a new person at the Fed, and they expect that President Trump's going to pick a new one. And if he picks me, I'd be happy to serve.

Last week, Treasury Secretary Scott Bessent indicated that Trump might announce the new chair before Christmas. Bessent is managing the interview process, with five potential candidates reportedly under consideration: Fed Governors Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh, BlackRock executive Rick Rieder, and Hassett.

The Federal Reserve is scheduled to make its next decision on interest rates on December 10, the final meeting of the year. Officials will determine whether to implement a third rate cut in 2019 or maintain current levels. Complicating matters, the central bank is still dealing with disruptions caused by the government shutdown, which delayed key November data on inflation and employment until mid-December.

Author: Sophia Brooks