Who will replace Jerome Powell? Trump says he will announce Fed Chair 'next week'

President Donald Trump said he plans to reveal his choice to succeed Federal Reserve Chair Jerome Powell “next week”, concluding weeks of speculation over who will head the US central bank when Powell’s term ends in May 2026.

Whomever Trump ultimately selects, the nominee will be sent to the Senate for confirmation.

Following are the leading candidates being considered to succeed Powell:

1. Kevin Hassett, White House National Economic Director: A veteran conservative economist and close economic adviser to Trump, Hassett, 63, is a loyal supporter of the president. He has reportedly consistently defended Trump’s economic policies, downplayed data indicating weakness in the US economy, and echoed claims of bias at the Bureau of Labour Statistics.

2. Kevin Warsh, former Fed official: Warsh served as a Federal Reserve governor from 2006 to 2011. According to the BBC, he has been an outspoken critic of the Fed, challenging its heavy reliance on economic data and its use of assets on the balance sheet. Although known for his “hawkish” stance, favouring higher rates while in office, he is now viewed as more supportive of lower rates in the near term.

3. Christopher Waller, Fed Governor: Waller is the current Fed official, nominated by Trump in 2020. He has recently emphasised that the Federal Reserve has room to lower interest rates further, aligning with Trump’s preferences. However, unlike Hassett and Warsh, he is seen as lacking the personal connections to reach the top of Trump’s list, according to the BBC.

4. Rick Rieder, BlackRock executive: With a long career on Wall Street, Rieder has drawn Trump’s attention with his proposals to reform the Fed, as per Bloomberg. He also has an advantage over the other three finalists because he has never worked at the Fed, making him appear less tied to the institution.

Trump slams Powell

Trump hit out at Powell’s monetary policy on Thursday, insisting the central bank should "substantially" lower interest rates, a day after it paused its series of rate cuts.

The Fed voted 10-2 on Wednesday to leave the benchmark lending rate unchanged, prompting Trump to renew his criticism of Powell.

Trump took to his Truth Social platform and said, “Jerome 'Too Late' Powell again refused to cut interest rates, even though he has absolutely no reason to keep them so high.”

He also described Powell a “moron”, adding, “The Fed should substantially lower interest rates, NOW!”

While Trump noted that Powell "admits inflation is no longer a problem or threat," the central bank on Wednesday stated that “inflation remains somewhat elevated”.