• President Trump says he may name a new Fed Chair before year-end, replacing Jerome Powell.
• Trump’s shortlist includes Waller, Bowman, Hassett, Warsh, and Rieder.
• The decision could reshape U.S. monetary policy heading into 2026 — here is what markets are watching next.
U.S. President Donald Trump confirmed that he may appoint a new Federal Reserve Chair before the end of 2025, signaling the end of Jerome Powell’s tenure. Trump’s long-standing criticism of Powell — whom he initially appointed during his first term — has resurfaced as the president pushes for a more aggressive monetary stance. Powell’s term officially expires in May, but insiders suggest an early announcement could arrive before year-end.
The Shortlist: Five Names in Contention
According to The Wall Street Journal, Trump’s shortlist includes five potential candidates: Christopher Waller and Michelle Bowman, both current Fed governors appointed by Trump; Kevin Hassett, former White House National Economic Council director; Kevin Warsh, a former Fed governor under George W. Bush; and Rick Rieder, a senior BlackRock executive overseeing global fixed income. Among them, Warsh and Hassett are reportedly closest to Trump personally, a factor that many observers believe could heavily influence his final decision.
Why Trump Wants a New Fed Chair
Tensions between Trump and Powell have been building for years over the Fed’s handling of rate policy and spending. While the central bank recently delivered another quarter-point rate cut, Trump has repeatedly argued that the institution needs a complete overhaul — starting from the top. Historically, new Fed chairs are nominated several months before a current term ends, suggesting an early 2026 transition is likely if Trump follows through.
What’s Next for the Fed and Markets
The Federal Reserve is set to conclude its next policy meeting this Wednesday, with markets expecting another small rate cut. Still, uncertainty looms over how Trump’s pick might reshape U.S. monetary policy heading into 2026. Analysts say the next chair’s stance on inflation control and fiscal coordination could determine whether the Fed maintains its cautious path — or pivots toward Trump’s preferred, growth-first agenda.
