Politics

Trump’s Fed Chair Pick: What the Early Announcement Means for the Economy

Trump will announce a new Fed chair in December, replacing Powell. The nominee will shape US monetary policy.

October 28, 2025, 11:58 AM

Donald Trump speaking and gesturing with a serious expression, wearing a navy suit and a pink tie

President Trump visited the Federal Reserve, where he and Fed Chair Jerome Powell discussed the costs of the central bank's renovations. By Photo Agency / Shutterstock.com.

Executive Summary

The Trump administration is narrowing its search for the next Federal Reserve chair, with President Trump expected to announce his nominee as early as December.

President Trump is seeking to replace current Fed Chair Jerome Powell due to strong dissatisfaction and aims to align the central bank more closely with his economic vision.

An early announcement could lead to “dueling narratives” on the US economy, with the new Fed chair facing the task of guiding the central bank through complex economic policies.

The Story So Far

President Trump is actively seeking to replace current Federal Reserve Chair Jerome Powell, whose term concludes in May, driven by his strong dissatisfaction with Powell’s policies, particularly his reluctance to lower interest rates. This search, led by Treasury Secretary Scott Bessent, represents an opportunity for Trump to appoint a new leader who aligns more closely with his economic vision, thereby reshaping the central bank’s direction.

Why This Matters

President Donald Trump’s expedited search for a new Federal Reserve chair, driven by his dissatisfaction with the current leadership, signals an impending shift in the central bank’s direction and monetary policy to align with his economic vision. An early December announcement could create an unprecedented period of “dueling narratives” between the incumbent and the nominee, potentially introducing uncertainty into economic discourse, while the incoming chair will face the complex challenge of navigating an economy shaped by the administration’s policies and existing divisions among Fed policymakers.

Who Thinks What?

President Trump and his administration are actively searching for a new Federal Reserve chair, driven by Trump’s dissatisfaction with current Chair Jerome Powell and his desire to align the central bank more closely with his economic vision, particularly regarding lower interest rates.

Current Fed Chair Jerome Powell, whose term concludes in May, has been the subject of strong public criticism from President Trump over his monetary policy decisions.

Federal Reserve policymakers are reportedly divided on the economic impact of Trump’s policies, and the chosen nominee will face the complex task of guiding the central bank through an economic landscape with concerns about higher inflation and potential weaker economic growth.

The Trump administration is actively narrowing its search for the next Federal Reserve chair, with President Donald Trump expected to announce his nominee as early as December. This decision, led by Treasury Secretary Scott Bessent, comes as Trump seeks to reshape the central bank, having previously expressed strong dissatisfaction with current Fed Chair Jerome Powell, whose term concludes in May. Five candidates are reportedly on the short list for the influential role.

The Search for a New Fed Chair

President Trump has made no secret of his strong distaste for current Fed Chair Jerome Powell, having at various points suggested he would fire Powell or force his resignation. Trump has also publicly criticized Powell for not lowering interest rates and called on the Fed’s Board of Governors to oust him. The upcoming nomination represents an opportunity for Trump to align the central bank more closely with his economic vision.

Treasury Secretary Scott Bessent, who is spearheading the administration’s search, initially interviewed approximately a dozen candidates around Labor Day. This pool has since been condensed to a short list of five individuals. The backgrounds of these candidates span experience within the White House, the Federal Reserve itself, and the private sector, though deliberations remain fluid and the final decision rests with President Trump.

Implications of an Early Announcement

The anticipated December announcement would mark the earliest a president has named a Fed chair nominee before the incumbent’s term expires. This could lead to a period with “dueling narratives” on the US economy, as described in the original reporting, with current Chair Powell and Trump’s nominee presenting potentially differing views for months.

The chosen nominee will require confirmation by the Republican-controlled Senate. Whoever takes the helm will face the complex task of guiding the central bank through an economic landscape shaped by the administration’s sweeping policies, which have raised concerns about higher inflation and potential weaker economic growth. Federal Reserve policymakers are reportedly divided on the current economic impact of Trump’s policies.

A Pivotal Economic Role

The head of the US central bank wields immense influence over both domestic financial markets and the global economy. Even minor statements from the Fed chair can trigger significant market movements and shifts in billions of dollars. This critical role underscores the importance of President Trump’s upcoming decision in shaping the future direction of US monetary policy.