President Donald Trump announced that he may select a new Federal Reserve Chair by the end of the year, as his administration moves into the final evaluation phase to replace current Chair Jerome Powell. According to reports, the shortlist has been narrowed down to five names, and the final announcement is expected after Thanksgiving.
Five Names on the Final Shortlist
As per a report by The Associated Press, Trump’s shortlist includes Kevin Hassett, Kevin Warsh, Christopher Waller, Michelle Bowman, and Rick Rieder — a mix of economists, financial executives, and current Fed officials (AP News).
Hassett, a former White House economic adviser under Trump, is seen as a strong contender for his alignment with the administration’s pro-growth agenda. Warsh, who served as a Fed governor from 2006 to 2011, is considered a market-friendly candidate known for his conservative approach to interest rates.
Current Fed Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman bring institutional continuity, while Rick Rieder, a senior executive at BlackRock, adds a private-sector perspective.
Decision Expected After Thanksgiving
According to Reuters, Trump said a “second round of evaluations” is currently underway and he plans to make the final selection after Thanksgiving. The review process reportedly includes detailed policy briefings and personal interviews with each of the finalists (Reuters).
Treasury Secretary Scott Bessent stated that the White House wants to “get it right this time,” noting that the next Fed Chair will play a central role in shaping the administration’s economic and inflation strategies.
Potential Policy Shift
The choice of Fed Chair will have significant implications for U.S. monetary policy. Under Jerome Powell, the Federal Reserve has balanced rate cuts and inflation control amid post-pandemic economic volatility. However, analysts suggest that Trump’s shortlist signals a potential tilt toward looser monetary policy — prioritizing growth and job creation over inflation restraint.
A report by Barron’s noted that betting markets currently place Hassett and Warsh as leading contenders, both seen as supportive of lowering interest rates to boost investment and consumer spending (Barron’s).
Such a shift could mark a major departure from the cautious tone Powell maintained since 2022, particularly in the face of persistent inflation and global economic uncertainty.
Independence and Market Concerns
While the White House’s early push to identify a successor demonstrates a proactive stance, it has also sparked debates about the independence of the Federal Reserve. The Fed is traditionally expected to operate free of political influence, making the process of appointment politically sensitive.
Some economists warn that a politically aligned Fed leadership could risk long-term credibility in managing inflation and market confidence. However, Trump allies argue that the current leadership has been “too slow” in responding to growth opportunities.
What Happens Next?
According to Business Insider, the administration aims to finalize internal evaluations by the first week of December, setting the stage for a formal announcement before the new year (Business Insider).
If the appointment is confirmed, the new Chair would officially take over in May 2026, when Powell’s term expires. However, early confirmation could allow the incoming Chair-designate to influence ongoing policy discussions well before taking office.
A Defining Economic Decision
Trump’s decision will shape the Federal Reserve’s stance on interest rates, inflation control, and market regulation for years to come. As global economies continue to battle inflationary pressures and geopolitical uncertainty, the Fed’s next leader will have the challenge of steering the U.S. economy through a delicate balancing act between growth and stability.
The coming weeks — especially the period after Thanksgiving — will reveal whether Trump opts for a loyalist who shares his economic vision or a more traditional technocrat to ensure continuity. Either way, the outcome will redefine the direction of U.S. monetary policy heading into 2026.
