Daijiworld Media Network - Washington
Washington, Dec 30: US President Donald Trump on Monday hinted that he has a preferred candidate in mind to succeed Jerome Powell as Chair of the Federal Reserve, though he said there is no urgency to make an announcement. At the same time, Trump once again openly criticised Powell, even suggesting he could be removed from the post.
Speaking to reporters at a press conference, Trump said his choice for the next Fed chief “hasn’t changed” and that he would reveal the name “at the right time.”
“I do, still do — hasn’t changed. I’ll announce him at the right time. There’s plenty of time,” Trump said, adding that the announcement would likely come “sometime in January.”
The president went further, saying Powell “should resign” and remarking that he would “love to fire him.” Trump had come close to attempting Powell’s removal in July, but reportedly backed off following sharp negative reactions from financial markets.
“Maybe I still might,” Trump said while addressing the media at his Mar-a-Lago resort in Florida.
While Trump did not disclose his top choice, National Economic Council Director Kevin Hassett is widely viewed as the frontrunner. Former Federal Reserve Governor Kevin Warsh has also drawn Trump’s praise in recent months. Other names believed to be under consideration include current Fed Governors Christopher Waller and Michelle Bowman, along with BlackRock executive Rick Rieder.
Trump’s remarks added to months of uncertainty surrounding the selection process, during which he has made shifting and sometimes contradictory statements. Earlier in December, Trump claimed he had narrowed the field to a single candidate, only to later suggest that several contenders remained under active consideration.
The president has been a long-time critic of Powell, despite appointing him during his first term. Trump has repeatedly urged the Federal Reserve to pursue more aggressive interest rate cuts, arguing that lower rates are necessary to bring down mortgage costs and support economic growth.
Although the Fed has reduced interest rates at each of its last three policy meetings, officials indicated in December that they anticipate just one rate cut in 2026.
Trump also revealed that he is considering a “gross incompetence” lawsuit against Powell over an ongoing renovation project at the Federal Reserve.
Powell’s term as Fed Chair is due to expire in May 2026, though his term as a member of the Federal Reserve Board of Governors runs until 2028. Powell has not indicated whether he plans to step down when his chairmanship ends, a move that could limit Trump’s ability to reshape the Fed’s leadership.