US President Donald Trump hinted that he already has a preferred candidate to head the Federal Reserve in the next phase, but clarified at the same time that he is in no hurry to announce the name, in parallel with exciting statements in which he expressed his renewed consideration of firing the current head of the central bank, Jerome Powell.
During a press conference on Monday, Trump, when asked whether he had a preferred candidate to head the Federal Reserve, said that his position had not changed and that he would announce the name at the appropriate time, stressing that he still had time to make the decision.
The US president added that Powell “should resign,” noting that he “would like to fire him,” pointing out that he had already come close to taking this step last July before backing down after negative reactions in the financial markets.
Given the uncertainty surrounding the Federal Reserve chairmanship and President Trump’s provocative statements about firing Jerome Powell, with the direct impact this has on monetary policy and market volatility, the need arises for proactive analytical tools that monitor these serious political developments.
Ambiguity surrounds the timing and the names being considered.
Speaking to reporters at his Mar-a-Lago resort in Florida, Trump said he might reconsider firing Powell, stressing that the possibility still exists.
Trump did not reveal the name of the frontrunner to head the Federal Reserve, only indicating that the announcement would be made “sometime during January.”
It is estimated that National Economic Council Director Kevin Hassett is among the leading candidates, although Trump has also expressed interest in former Federal Reserve Governor Kevin Warsh, along with other names that have been put forward on the final list, including current Federal Reserve board members Christopher Waller and Michelle Bowman, as well as Rick Rieder of BlackRock.
Contradictory statements and widespread criticism
Trump had previously made vague and sometimes contradictory statements about his decision-making process for choosing the new head of the central bank, saying in early December that he had narrowed down the candidates to one name, before later confirming that he was still considering several names, while praising more than one candidate on the shortlist.
Trump has long been known for his frequent criticism of Jerome Powell, even though he was the one who chose him to head the Federal Reserve during his first presidential term. The president believes that the current monetary policy does not serve the goals of the White House, especially with regard to reducing borrowing costs and mortgage rates.
Although the Federal Reserve has cut interest rates at its last three meetings, its officials indicated in December that they expect only one more cut during 2026, which contradicts Trump's desire for a more expansionary approach.
Legal files and the future of the Federal presidency
In a notable development, Trump said on Monday that he is considering filing a lawsuit against Powell for incompetence over an ongoing renovation project at the Federal Reserve headquarters.
Powell’s term as chairman of the Federal Reserve is scheduled to end in May 2026, while his membership on the central bank’s Board of Governors extends until 2028, opening the door to multiple scenarios regarding his future within the institution.
Powell has not yet announced whether he will leave the board when his term as chairman ends, as his continued membership on the Board of Governors could deprive Trump of the opportunity to appoint a new member to the board and keep some of the influence of monetary policy away from the rapid change sought by the White House.
