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Trump Says He’s Made a Choice for Next Fed Chair, But Keeps Pick Under Wraps
WASHINGTON – President Donald Trump has announced he knows who will succeed Jerome Powell as the next Federal Reserve Chair, but remains tight-lipped about the selection. The announcement comes as prediction markets heavily favor National Economic Council Director Kevin Hassett for the role, though Hassett himself is playing coy.
While the identity of the next Fed Chair may be revealed in the coming weeks, significant uncertainty surrounds the economic environment the new leader will inherit. The Fed is currently divided between officials advocating for further interest rate cuts to stimulate the labor market and those concerned about rising inflation. Futures market traders are assigning a high probability to a rate cut at the December 9-10 policy meeting, although recent trading has been volatile.
Trump has repeatedly voiced his preference for lower interest rates, a sentiment seen as a key consideration in his selection. However, the next Fed Chair will face challenges beyond interest rate policy. Treasury Secretary Scott Bessent, who is leading the Fed chair search, advocates for a fundamental re-evaluation of the Fed’s mission. Bessent suggested a simplification of monetary policy and a reduced public profile for regional bank presidents, arguing that their frequent commentary can unnecessarily impact markets.
This call for reform has been echoed by economists like Mohamed El-Erian, who emphasize the need for the Fed to adopt a more strategic, long-term perspective and to step back from its heavy intervention in the economy. The next Fed Chair will face the challenge of navigating these conflicting viewpoints and guiding the central bank through a potentially pivotal moment for the U.S. economy.
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