What is the Trump Announcement of the New Federal Reserve Chair Nominee?

The nomination for the next chairman of the Federal Reserve has become a central point of discussion in financial markets and political circles across the United States. President Trump’s selection of a new leader for the powerful Federal Reserve System, the U.S. central bank, is set to define the nation’s monetary policy for years to come, directly impacting everything from housing costs to job growth. 

With the current chair of the Federal Reserve, Jerome Powell's term set to expire in May 2026, the focus on the potential Federal Reserve chair nominee has intensified. This is especially true after the President’s recent criticism of the Fed's pace in interest rate cuts, even as the market is pricing in a strong likelihood of a rate reduction at the December 2025 Federal Reserve meeting (with odds around 87% as of early December 2025). This crucial choice is arguably the most significant piece of Federal Reserve news today as observers anticipate a major shift in the central bank's direction.

Who are the Nominees for Chairman of the Federal Reserve System? 

President Trump has made it clear that he has narrowed down his choices to lead the Federal Reserve System, a decision widely viewed as a move to install a leader more aligned with his push for deeper interest rate cuts. The selection process is reportedly being managed by the Treasury Secretary Scott Bessent.

White House National Economic Council Director Kevin Hassett is seen by many in Washington as the top contender to be the next Federal Reserve chairman, favored for his loyalty and alignment with the President’s pro-growth, low-rate agenda.

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Who is the Current Federal Reserve Chair of the U.S.? 

The individual currently serving as the chair of the Federal Reserve of the U.S. is Jerome H. Powell.

Current Federal Reserve Board governor Jerome Powell in Washington on Oct. 3. Courtesy: The Wall Street Journal 

• Name: Jerome Hayden "Jay" Powell

• Role: 16th Chair of the Federal Reserve System Board of Governors.

• Appointment: First appointed as Chair in 2018 and reappointed in 2022.

• Term Expiration: His current term as chairman of the Federal Reserve is scheduled to expire in May 2026.

• Policy Stance: Powell has pushed for the Fed to be free from political pressure while guiding monetary policy in the post-pandemic era, with a focus on the two goals of keeping prices stable and creating as many jobs as possible.

Despite his term expiring, Chair Powell will remain a member of the Board of Governors until his separate term as a Governor ends in 2028. The new Federal Reserve chairman will be confirmed by the U.S. Senate and is expected to take over the leadership role immediately upon Powell's departure as Chair next year.

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What did Trump say about the Nominee Announcement? 

President Trump provided a clearer, updated timeframe for the announcement of the Federal Reserve chair nominee during a Cabinet meeting at the White House on Tuesday, December 2, 2025. The President stated, "We'll be announcing somebody, probably early next year, for the new chairman of the Fed". This announcement follows months of the President publicly criticizing current Chair Jerome Powell, even calling him a "stubborn ox," for being "too slow and timid" in pursuing interest rate reductions.

Furthermore, Trump confirmed that he has already made a final choice for the next leader of the Federal Reserve System, stating that he has the decision "down to one." This declaration suggests the process is complete on his end, with the public reveal simply being a matter of timing. The new timeline pushes the official announcement into 2026, though the crucial selection of the next chairman of the Federal Reserve remains the most anticipated upcoming decision regarding the U.S. economy