- Trump says he “already knows” his choice for the next Fed chair as interviews advance.
- Treasury Secretary Scott Bessent remains Trump’s preferred candidate but insists he won’t take the job.
- The five-person shortlist includes Waller, Bowman, Warsh, Hassett, and Rieder, with a decision expected after Thanksgiving.
President Donald Trump signaled Tuesday that he has effectively chosen who will replace Federal Reserve Chair Jerome Powell once Powell’s term ends in May 2026. The president told reporters, “I think I already know my choice,” adding that interviews are already underway and the shortlist is locked in. The moment instantly shifted market attention, as traders began bracing for what could become one of the most consequential monetary appointments in years.
Bessent Remains Trump’s Favorite — But Still Refuses
Trump again pointed to Treasury Secretary Scott Bessent as his preferred pick. But Bessent continues to insist he will not take the job, despite being deeply involved in the interview process.
“I like him, but he’s going to refuse,” Trump said, half joking but clearly still hoping to persuade him.
Bessent is overseeing second-round interviews and expects the full cycle to be completed by Thanksgiving, shaping the field for Trump’s final decision.
Inside the Five-Person Shortlist
The confirmed candidates include a mix of traditional central-bank voices and more market-oriented economists:
- Chris Waller — Federal Reserve Governor
- Michelle Bowman — Federal Reserve Governor
- Kevin Warsh — Former Federal Reserve Governor
- Kevin Hassett — National Economic Council Director
- Rick Rieder — BlackRock Global Head of Fixed Income
Trump added that the list contains both “surprising names” and “standard names,” hinting at the potential for either a continuity pick or a major ideological shift at the Fed.
“It’s nice to every once in a while go politically correct,” he said, implying he may choose a more conventional candidate.
Powell’s Term Winds Down as Trump Signals Impatience
Current Fed Chair Jerome Powell’s term officially ends in May 2026, but Trump made his feelings toward Powell unmistakably clear.
“I’d love to get the guy currently in there out right now, but people are holding me back,” he said, expressing frustration rather than any formal plan to remove Powell early.
Powell recently cut interest rates again, but the administration has frequently pushed for much more aggressive easing — creating an increasingly visible policy divide.
What Happens Next? Here Is What to Expect
With interviews wrapping up by Thanksgiving, the administration is moving quickly to finalize the next leader of U.S. monetary policy. Markets expect Trump to announce his pick well ahead of Powell’s final months, giving investors a clearer sense of what the 2026 rate environment might look like.
