The race to lead the world’s most powerful central bank is accelerating after US President Donald Trump said he has already made his decision on who will replace Jerome Powell as the next Chair of the Federal Reserve. With Powell’s term ending in May 2026, speculation has intensified around three primary contenders Kevin Hassett, Kevin Warsh, and Christopher Waller as markets await an announcement that could arrive before Christmas.

Speaking aboard Air Force One on Sunday, Trump told reporters:
“I know who I am going to pick, yeah… We will be announcing it.”
He declined to reveal the nominee, but prediction markets and analysts currently position National Economic Council Director Kevin Hassett as the frontrunner.

The upcoming appointment is expected to shape the future direction of US interest rates, inflation strategy and financial stability at a time of intense political and economic pressure.

Why This Decision Matters

The Chair of the Federal Reserve influences global financial markets, directs monetary policy, leads the FOMC (Federal Open Market Committee), and oversees regulatory frameworks for banks. Any nominee must be confirmed by the Republican-controlled Senate.

Jerome Powell, appointed by Trump in 2017, has been a frequent target of the president’s criticism over interest-rate strategy. The contentious relationship has amplified expectations of a dramatic leadership shift.

Kevin Hassett: Market Favorite and Trump Loyalist

Kevin Hassett, former Chair of the Council of Economic Advisers and current head of the National Economic Council, is widely viewed as the leading candidate.

A Bloomberg report and prediction markets give him a 70% chance of emerging as Trump’s pick. Bond markets reacted sharply last week when his candidacy surged briefly pushing the 10-year Treasury yield below 4%.

Hassett has strongly advocated for more aggressive rate cuts, saying on CBS that he would support lower rates to deliver “cheaper car loans and easier access to mortgages.”
A close Trump ally, he has defended the administration publicly on economic narratives, including inflation data and attacks on the Bureau of Labor Statistics.

Supporters praise him as a pro-growth strategist, while critics warn he could compromise Fed independence and face difficulty unifying the rate-setting committee.

Kevin Warsh: Crisis Veteran and Hawkish Voice

Former Fed governor Kevin Warsh is also in the running. A Morgan Stanley alum, Warsh served as a liaison between Wall Street and the central bank during the 2008 financial crisis and previously worked in the George W. Bush administration.

Trump considered appointing him in 2017 before choosing Powell.
Warsh is known for more hawkish leanings and would represent a sharp policy shift toward tighter monetary discipline.

He is regarded as a strong crisis manager, but his selection could unsettle markets expecting rate cuts.

Christopher Waller: The Continuity Candidate

Current Fed governor Christopher Waller offers institutional continuity and experience from inside the central bank. Confirmed in a narrow 48–47 Senate vote in 2020, Waller has served alongside Powell and is seen as a stabilizing figure.

He recently confirmed discussions with Treasury Secretary Scott Bessent, saying they had a “great meeting.”

Waller is considered less politically aligned with Trump than Hassett, but more predictable to markets and central-bank observers.

Other Names on the Radar

Also mentioned are Fed governor Michelle Bowman and BlackRock executive Rick Rieder, though analysts see their chances as lower at present.

Why Trump Wants Change

Trump has repeatedly clashed with Powell, accusing him of obstructing growth by keeping interest rates too high. He even drafted a letter to remove Powell earlier this year and is currently fighting to fire Fed Governor Lisa Cook now set for Supreme Court review in January.

His urgency in naming a new chair is tied closely to the 2026 economic outlook and his push for faster rate cuts.

What’s Next on the plate?

The White House has indicated it may reveal the nominee before Christmas, ahead of the December 9-10 FOMC meeting, where markets expect a 25 basis-point rate cut.

Whoever is nominated must clear Senate confirmation and will likely begin a new 14-year term on the Fed Board in February, assuming the role officially in May 2026 when Powell steps down.

The Big Question

Will Trump choose the loyal rate-cut champion (Hassett), the crisis expert (Warsh), or the steady institutional hand (Waller)?

For now, only the president knows the answer but markets are already preparing for impact.

Drug Boat ‘Kill Order’ Row: White House Confirms Pete Hegseth Approved Second Strike; Could He Face Criminal Liability?

The post US Fed Leadership In Focus: Who Will Replace Jerome Powell? Hassett, Warsh Or Waller? All Eyes On The Next Chair appeared first on NewsX.