Trump Sets Early 2026 Timeline for Fed Chair Announcement as Speculation Intensifies

President Donald Trump has confirmed that he will announce his nominee for the next Federal Reserve Chair in early 2026, offering the clearest timeline yet for a decision that could significantly influence future U.S. monetary policy. Speaking during a Cabinet meeting, Trump noted that the search has narrowed to a single candidate, though he declined to reveal the name.

The announcement follows growing speculation over who will replace Jerome Powell when his term ends in May. Trump has repeatedly criticized Powell for being slow to cut interest rates and has signaled that the next Fed Chair must take a more aggressive approach to monetary easing. Treasury Secretary Scott Bessent, who is overseeing the selection process, previously suggested a decision might arrive by Christmas, but Trump’s latest remarks point to a slight shift in schedule.

Kevin Hassett, head of the White House National Economic Council, is widely viewed as the frontrunner, especially after recently stating he is willing to serve. Other potential picks include Fed Governors Christopher Waller and Michelle Bowman, former Governor Kevin Warsh, and BlackRock executive Rick Rieder. Trump often jokes about choosing Bessent, though Bessent continues to dismiss the idea.

The incoming Fed Chair will play a pivotal role as the central bank faces political pressure to accelerate rate cuts. Trump has long argued that the Fed must move faster to support economic growth. If Trump selects an outsider, the nominee would serve a 14-year term as governor, giving the administration a rare opportunity to reshape the institution’s long-term direction. The choice will require Senate confirmation.

With Trump confirming the early 2026 announcement window, markets and policymakers are now preparing for a defining moment that could set the tone for U.S. economic strategy in the years ahead.