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Economy January 22, 2026

Trump Completes Selection Process for Next Federal Reserve Chair

President Signals Impending Announcement of New Fed Leader Amid Economic Advisory Reconsiderations

By Avery Klein
Trump Completes Selection Process for Next Federal Reserve Chair

President Donald Trump has finalized his evaluation of candidates for the role of Federal Reserve chair, confirming that a decision on the next head of the central bank is imminent. The final list includes a diverse group from both government economic advisors and private sector experts. Market observers are closely monitoring the development due to its potential implications for U.S. monetary policy.

Key Points

  • President Donald Trump has completed the vetting process for his nominee to lead the Federal Reserve, signaling an imminent announcement.
  • The final candidate pool includes both current Fed officials and private sector leaders, with National Economic Council Director Kevin Hassett previously favored but potentially remaining in his current role.
  • Rising tensions between the administration and current Fed Chair Jerome Powell over monetary policy and agency spending investigations contextualize the transition process.

President Donald Trump announced on Thursday that his search for a new Federal Reserve chair has reached its conclusion after an extensive review of the top candidates under consideration. Indicating that a formal announcement is forthcoming, the president told reporters, "I’ll be telling you soon. I have somebody that I think will be very good." This statement has heightened anticipation within financial markets worldwide given the critical role of the Federal Reserve in the global economy.

The shortlist under review comprises individuals drawn from both institutional and private sector backgrounds, including National Economic Council Director Kevin Hassett, BlackRock's Rick Rieder, incumbent Fed Governor Christopher Waller, and ex-Fed Governor Kevin Warsh. While Hassett had previously been regarded as the frontrunner, emerging reports suggest the administration may be reconsidering his appointment in favor of maintaining his position at the White House.

These developments take place amidst mounting tensions between the administration and current Federal Reserve Chair Jerome Powell. President Trump's public criticism revolves around the Fed’s approach to interest rate adjustments and an ongoing investigation into the agency’s expenditures. The appointment of a new Fed chair is viewed as a pivotal moment that could influence monetary policy directions and investor confidence.

Risks

  • The choice of a new Federal Reserve chair may introduce uncertainty in monetary policy, potentially affecting markets sensitive to interest rate changes, such as the financial and real estate sectors.
  • The possibility that the administration may decide against appointing Kevin Hassett, who holds a key advisory role, could signal shifting economic policy priorities, impacting investor confidence.
  • Ongoing investigations and political conflicts surrounding the Fed’s operations could influence perceptions of central bank independence, affecting the broader economic environment.

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