U.S. President Donald Trump stated on Sunday that he has chosen the next Federal Reserve Chair and will announce the decision shortly.
When asked by reporters whether he would nominate Kevin Hassett, the current director of the National Economic Council, to replace Jerome Powell as Fed Chair, Trump declined to confirm the speculation.
According to betting data from prediction markets, Hassett currently has a 64% chance of being nominated, a significant increase from less than 40% earlier in the week.
Federal Reserve Governor Christopher Waller has a 12% probability of being selected, while former Fed Governor Kevin Warsh stands at 11%.
Earlier on Sunday, Hassett remarked in an interview that the market's reaction to the news of Trump finalizing his pick for Fed Chair was a positive signal. Hassett, a staunch defender of Trump’s economic policies—including tariffs and interest rate policies—stated that he would gladly accept the nomination if chosen.
President Trump has previously pressured current Fed Chair Jerome Powell and the Federal Reserve to implement significant rate cuts, even threatening to dismiss Powell, whose term ends in mid-May. Additionally, Trump is attempting to remove Fed Governor Lisa Cook, who has challenged his authority and raised concerns about allegations of mortgage fraud.
The Federal Reserve has cut interest rates in its last two meetings. Financial markets anticipate another rate cut on December 10. A dovish Fed Chair would likely push for further monetary easing.
