Who will be the next Fed chair: Hassett, Warsh or Waller? Trump says, ‘I know who I’m going to pick’

US President Donald Trump has signalled that a pivotal economic decision is imminent, declaring aboard Air Force One on Sunday that he has already chosen the next chair of the Federal Reserve. With Jerome Powell’s term ending in May, speculation has intensified over whether Kevin Hassett, Kevin Warsh or Christopher Waller will emerge as the administration’s preferred candidate.

What did Donald Trump say about the upcoming Fed appointment?

Speaking to reporters during an in-flight media interaction, Donald Trump confirmed that his mind is made up—but refused to reveal the name.

“I know who I am going to pick, yeah,” Trump said on his way back to Washington.

When asked directly whether National Economic Council Director Kevin Hassett would be the choice, Trump replied: “I’m not telling you. We will be announcing it.”

Donald Trump's remarks have fueled a fresh round of speculation within financial and political circles, especially as the White House looks set to make the announcement before the end of the year.

Is Kevin Hassett still the frontrunner?

Kevin Hassett, who previously chaired the Council of Economic Advisers and is widely viewed as a market-friendly voice, has been one of the most speculated names in recent weeks. A Bloomberg report last week positioned him as a leading contender.

“We had a great Treasury auction, interest rates went down, and I think that the American people could expect President Trump to pick somebody who’s going to help them have cheaper car loans and easier access to mortgages at lower rate,” Hassett said on CBS. “That’s what we saw in the market response to the rumor about me.”

Trump trusts Hassett and views him as aligned with the desire to push for more aggressive interest-rate cuts at the central bank, people familiar with the matter have said. Hassett has said he’d accept the role if asked, though analysts warn he may struggle to unite the Fed’s rate-setting committee and could be more vulnerable to Trump’s pressure. His emphasis on the market reaction was a de facto rebuttal to those concerns.

Though Trump is known for last-minute changes, the prospect of Hassett being nominated for the position briefly pushed the 10-year Treasury yield below 4%.

Kevin Hassett's measured response suggests he remains in contention, but is not assured of the role.

How strong are the chances for Kevin Warsh and Christopher Waller?

The two other names under consideration—former Fed governor Kevin Warsh and current board member Christopher Waller—bring contrasting policy pedigrees.

Other finalists include Fed governors Michelle Bowman and BlackRock’s Rick Rieder.

Kevin Warsh, known for his hawkish leanings and prior tenure at the central bank, would represent a sharp directional shift. Christopher Waller, currently serving on the Federal Reserve Board, embodies continuity and institutional steadiness.

Treasury Secretary Scott Bessent, who has overseen the selection process, said last week that Trump could announce his nominee before the Christmas holiday on 25 December. Trump also regularly says he’d like Bessent as chair, a notion Bessent has repeatedly rejected.

Why is Donald Trump eager to choose a new Fed chair?

Economic policy has been one of the most contentious arenas of Trump’s presidency. His clashes with Jerome Powell have been well documented. Trump nominated Powell in 2017, but the relationship deteriorated rapidly.

He has blasted the incumbent chair as “grossly incompetent” and even circulated a draft letter firing him during a private meeting with House Republicans in July. Such unprecedented friction has set the stage for a dramatic change at the helm of the central bank.

Scott Bessent recently added to the anticipation, saying there is a “very good chance” the president will announce his pick before Christmas.

What comes next for the Federal Reserve?

With Jerome Powell’s term expiring in May, the White House faces both political and economic imperatives. Markets will closely monitor the forthcoming announcement, which may determine the central bank’s direction on interest rates, inflation strategy, and financial stability.

Whoever Donald Trump picks will require Senate confirmation as chair and is likely to a 14-year Fed governor term, which begins in February, if the selection is an outsider.

(With inputs from Bloomberg)