- Trump said he plans to announce a new Fed chair pick sometime in January.
- Kevin Hassett and Kevin Warsh are among the potential candidates.
- Trump renewed threats of legal action over Fed headquarters renovations.
President Donald Trump said Monday that he is eyeing January as the likely window to announce a candidate to replace Federal Reserve Chair Jerome Powell. Speaking during a news conference at his Mar-a-Lago estate in Florida, Trump offered the brief timeline while meeting with Israeli Prime Minister Benjamin Netanyahu. The comment immediately revived attention around the White House’s increasingly strained relationship with the central bank.
Potential Replacements Begin to Take Shape
Powell’s term as Fed chair is set to expire in May, and Trump has made no secret of his dissatisfaction with the current leadership. Among the names reportedly under consideration are White House economic adviser Kevin Hassett and former Federal Reserve governor Kevin Warsh. Both figures have long been viewed as more aligned with Trump’s views on monetary policy, especially around interest rates and economic growth.
Lawsuit Threat Over Fed Renovations Returns
Alongside the discussion of a successor, Trump also reignited a long-standing threat to sue Powell over renovations at the Federal Reserve’s Washington, D.C., headquarters. The president has raised concerns about the cost of the project since last summer and repeated those criticisms on Monday. The renewed threat comes as Trump simultaneously defends the expenses tied to renovations at the White House, including a ballroom project, adding another layer of political tension to the debate.
Pressure Mounts on the Federal Reserve
Trump’s remarks underline how central bank leadership is becoming an increasingly political issue heading into the new year. His ongoing criticism of Powell’s handling of monetary policy has shaped expectations around the Fed’s future direction. With markets closely watching interest rate decisions and economic signals, the timing and tone of Trump’s eventual pick could carry significant weight.
What Comes Next
While no official announcement has been made, a January timeline suggests the decision may come sooner rather than later. Investors and policymakers alike will be watching closely for clues about how a leadership change could influence the Fed’s approach during a period of heightened economic uncertainty.
