Donald Trump said he would announce his pick to lead the Federal Reserve “early next year”, as he touted Kevin Hassett, the top White House economic official, as the “potential” new head of the US central bank.
The president’s comments in two separate public appearances on Tuesday follow a months-long selection process to replace Jay Powell as Fed chair that is nearing its conclusion.
“I guess a potential Fed chair is here too. I don’t know. Are we allowed to say that? Potential?” Trump said, introducing Hassett during a White House event. “He’s a respected person, that I can tell you. Thank you Kevin.”
Earlier in the day, during a televised cabinet meeting, Mr Trump said his search for a Fed chair was “down to one” after about 10 candidates had been considered. But he said the announcement of his pick would have to wait until 2026.
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The administration had previously signalled the nomination could come before Christmas. Mr Hassett is the clear frontrunner and betting odds have risen swiftly in his favour in recent days.
“We’ll be announcing somebody probably early next year for the new chairman of the Fed,” said Trump, after calling Powell a “stubborn ox” for not reducing interest rates more rapidly, his most common criticism of the US central bank.
[ Rate cuts will end in leading economies next year, says OECDOpens in new window ]
Later on Tuesday, the White House confirmed that a round of interviews with finalists for the job had been cancelled. Contenders had been expected to meet this week with senior administration officials including Trump and vice-president JD Vance.
However, press secretary Karoline Leavitt said the meetings could be rescheduled and no final decision has been made.
“The truth is nobody knows who president Trump’s next pick for the Fed chair will be until he makes the announcement himself. Everything until then is pure speculation,” she said.
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Despite Mr Hassett’s apparent advantage, Mr Trump said he was not necessarily his first choice. The president said he would have liked to see the Fed job go to Scott Bessent, the US Treasury secretary who is running the Fed chair selection process — something he has said repeatedly in recent months.
“I talked to Scott about taking the job, but he doesn’t want it,” Trump said on Tuesday.
Mr Powell may stay on as governor until January 2028 after his term as chair ends in May 2026. Mr Hassett’s nomination would need Senate approval. He could take the seat of Stephen Miran, another ally of the president, who is expected to step down from the Fed board early next year.
Clashes between the central bank and the Trump administration increased over the summer when the president tried to fire Fed governor Lisa Cook over allegations she had engaged in mortgage fraud.
Ms Cook has denied the allegations and is suing the president in a landmark case that will test the limits of the central bank’s ability to set interest rates free from White House pressure. - Copyright The Financial Times Limited 2025
