CaliToday (01/12/2025): President-elect Donald Trump confirmed on November 30 that he has finalized his decision on who will succeed Jerome Powell as the Chairman of the Federal Reserve. Speaking to reporters aboard Air Force One while returning to Washington from Florida, the President signaled that the formal reveal is just around the corner.
"I know who I’m going to pick. We’ll announce it later." — President Donald Trump
The "Hassett" Speculation
The atmosphere aboard the presidential aircraft was charged with speculation. When pressed by reporters on whether Kevin Hassett—the current Director of the National Economic Council and the betting market’s favorite—was "the one," Trump simply smiled and replied, "I’m not saying."
Hassett, who has emerged as the frontrunner with a 72% chance on prediction markets, recently commented that he would be "honored" to serve. He outlined a clear populist economic priority: "helping Americans get lower interest rates for car loans and home mortgages." Hassett also noted that the stock market has reacted positively to the mere signal that Trump is moving closer to replacing Powell.
The Conflict: Trump vs. Powell
The relationship between the President and the Fed Chair has been tumultuous. Despite appointing Powell in 2017, Trump has spent months criticizing him for maintaining high interest rates.
The Criticism: On November 18, in the Oval Office, Trump bluntly stated, "I really wanted to replace him right now, but people stopped me," adding that Powell had done a "terrible job."
The Economic Argument: Trump argues that despite inflation falling from its 9% peak in 2022, the Fed has been too slow to cut rates, hurting the labor market and consumer confidence.
The Shortlist: Who is in the Running?
With Jerome Powell’s term set to expire in May 2026, Treasury Secretary Scott Bessent revealed that President Trump had narrowed the field down to five heavyweights. The race for the world's most powerful central banking job includes:
Kevin Hassett: Director of the National Economic Council (The Frontrunner).
Kevin Warsh: Former Federal Reserve Governor.
Rick Rieder: Chief Investment Officer of Global Fixed Income at BlackRock.
Michelle Bowman: Current member of the Federal Reserve Board of Governors.
Christopher Waller: Current member of the Federal Reserve Board of Governors.
The Economic Stakes
The Federal Reserve finds itself at a delicate pivot point. The central bank executed two consecutive rate cuts in September and October, bringing the benchmark interest rate down to a range of 3.75% to 4.00%.
However, the Fed remains cautious. Policymakers argue that inflationary pressures persist and that more time is needed to verify that price growth is sustainably returning to the 2% target. The incoming Chair will face the immediate challenge of balancing Trump’s demand for aggressive cuts against the technical data regarding lingering inflation.