Trump Confirms Decision on Federal Reserve Chair, Announcement Imminent

2025-12-02 politics

Washington, Monday, 1 December 2025.
President Trump has decided on the next Federal Reserve chair, stirring speculation around Kevin Hassett. An official announcement will be made before Christmas, potentially impacting U.S. monetary policy.

Trump’s Decision and Implications

President Donald Trump announced on 30 November 2025 that he has made his choice for the next chair of the Federal Reserve, though the name has been kept under wraps. The decision comes amidst a backdrop of criticism directed at the current Fed Chair, Jerome Powell, whose term ends in May 2026. Trump’s dissatisfaction with Powell stems largely from their differing views on interest rate cuts, which the President has been advocating for more aggressively [1][2][3].

Speculation on Kevin Hassett

Kevin Hassett, the National Economic Council Director, has emerged as a leading contender for the position. While President Trump has not confirmed Hassett as his choice, the market has responded positively to the possibility of his nomination, with interest rates briefly falling [1][4]. Hassett himself has expressed willingness to serve if selected, emphasizing his alignment with Trump’s economic priorities, including the push for lower interest rates [4][5].

Timeline and Political Context

The official announcement of the new Federal Reserve chair is expected before Christmas 2025, as indicated by Treasury Secretary Scott Bessent. This timeline is crucial as it aligns with the upcoming Federal Open Market Committee (FOMC) meeting scheduled for December 9-10, 2025, where key monetary policy decisions will be discussed [2][5][6]. Trump’s choice will require confirmation by the Senate, a process that could be influenced by the nominee’s perceived loyalty to the President, as some economists have expressed concern over the potential politicization of the Fed [6][7].

Market Reactions and Future Outlook

The prospect of a new chair has already stirred market reactions, with the 10-year Treasury yield dipping below 4% following reports of Hassett’s potential nomination. The new chair’s approach to monetary policy will be pivotal in addressing the ongoing economic challenges, including inflation and interest rate strategy. As the announcement nears, stakeholders across global markets are keenly observing the developments, anticipating the direction the new leadership will steer the Federal Reserve [1][5][6].

Sources

Trump Federal Reserve