Washington: US President Donald Trump announced on Tuesday that he plans to reveal his choice for the next Federal Reserve chair early in the coming year. During a Cabinet meeting at the White House, Trump stated, "We'll be announcing somebody, probably early next year, for the new chairman of the Fed."
According to Anadolu Agency, Treasury Secretary Scott Bessent had previously indicated that the decision might be disclosed before Christmas. Despite not providing additional details, Trump mentioned on Sunday that he has already decided on his nominee. For months, Trump has been urging the Federal Reserve to lower interest rates, seeing the selection of a successor to Jerome Powell-whose term expires in May 2026-as an opportunity to implement significant changes within the organization.
Trump has criticized Powell for being hesitant in cutting rates and hinted that his replacement should be more assertive in reducing them. He reiterated these criticisms on Tuesday, labeling Powell a "stubborn ox, who probably doesn't like your president." Although Powell's tenure as chair ends next year, he may remain on the board as a governor for an additional two years.
The selection process involves examining 10 potential candidates, with Trump mentioning that both Bessent and Commerce Secretary Howard Lutnick are contributing to this process. "I think we probably looked at 10, and we have it down to one," Trump said. He also alluded to White House National Economic Council Director Kevin Hassett as a "potential Fed chair," praising him as a respected individual and supporter of Trump's economic policies.
Bessent had previously identified five candidates under consideration: Hassett, Fed Vice Chair for Supervision Michelle Bowman, Fed Board Member Christopher Waller, former Fed Board Member Kevin Warsh, and Rick Rieder of BlackRock.
Additionally, Trump announced that the coming year will witness "the largest tax refund season ever," with refunds being issued from tariff revenues. He highlighted the substantial revenue generated from tariffs and expressed optimism that, in the future, the public might not need to pay income taxes.