President Donald Trump will interview the final candidates to replace Jerome Powell as the next chair of the Federal Reserve. This will happen later today and the final decision will be made in January 2026.
Trump Begins Final Interviews for Next Fed Chair
The Financial Times reported that Trump will conduct the last round of interviews. He is comparing Kevin Hassett with several other well-known candidates.
Senior administration officials say Trump and Treasury Secretary Scott Bessent will meet on Wednesday with former Federal Reserve governor Kevin Warsh. This is part of the final evaluation process.
Hassett is the clear frontrunner to replace Mr. Powell when his term expires in May but administration officials say the president is leaving the process open. This is to determine whether Mr. Hassett would be serving a full four-year term or taking a shorter appointment.
Despite earlier reports that Trump favored him, the President has signaled he still plans to interview several finalists before landing on a new Fed chair. Trump added that the next chief of the central bank must favor quick interest-rate cuts.
Crypto and traditional market traders are already trying to predict how the new chair might impact monetary policy next year.
Administration officials said Bessent sent a shortlist to the White House that includes Hassett, Kevin Warsh, current Fed governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder. AAt least one more interview is expected next week, and a final announcement is planned for early January.
Could Hassett Have a Shorter Term?
Some people in the administration are considering whether Kevin Hassett should serve a shorter term than the usual four years. One idea being discussed is for him to take Powell’s place on the Board of Governors, with his term ending in 2028. This would rather than serving out a regular full term as Fed chairman.
President Trump wants Treasury Secretary Bessent to become the Federal Reserve leader in the future. However, Bessent has said he does not want the job. If Hassett takes a short-term appointment, it could help this possibility.
So far, Powell has not said whether he plans to stay on the Board of Governors after his leadership term ends. In other news, today the Federal Reserve is expected to deliver its third rate cut.
The President continued his public attacks on Jerome Powell this week. He suggested appointments made during the Biden administration might have been improperly certified using an autopen.