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New Delhi: US President Donald Trump has announced his plans of choosing a new chair for the Federal Reserve early next year. This comes as the current chair’s term ends in May 2026. Trump made these comments during a recent Cabinet meeting, that the selection among roughly ten candidates has now been narrowed down to one. While the President did not announce the name of the candidate, he did hint that it was a “respected person”.
Trump’s choice for the top job at the Fed is believed to be Kevin Hassett, currently the director of the National Economic Council. A veteran economist, Hassett led the Council of Economic Advisers during Trump’s first term and has been a key economic advisor for the President. He is known to be a trusted adviser for Trump when it comes to questions of trade, economic and monetary policy.
Hassett’s potential nomination has reportedly stirred both anticipation and unease in US economic and financial circles. Hassett is known for favoring more aggressive interest-rate cuts, something which aligns with Trump’s broader push for lower borrowing costs to stimulate growth. Many investors have already begun re-pricing markets in anticipation of a more dovish Fed under his leadership.
There remains a fair share of sceptics as well, with some arguing that a move like this can undermine the Fed’s independence, especially if they are politically motivated. Trump nonetheless has not announced his pick as of yet, and until he does markets would be closely watching and anticipating who would be seen next on the Fed chair.
Trump’s choice of cabinet members and of those occupying other top posts are characteristically unpredictable and idiosyncratic. Based on personal preference and loyalty, sometimes even at the expense of experience, Trump has built a legion of personal supporters turned office holders. While during his first term, the relatively politically novice Trump did have some outside and diverse voices in his close circle or advisors, this time around that has changed to a more personalised cabinet.
Often filled with unorthodox choices, Trump loyalists claim a larger share than political veterans. In his second term this has been most pronounced and been so from the start. From Pete Hegseth for defense secretary to Robert F. Kennedy Jr. as head of the Department of Health and Human Services, many of Trump’s picks have been extremely controversial and divisive even within his own camp. If picked, Kevin Hassett becoming the chair of the Federal Reserve would follow a similar trend.
