Trump Makes Stunning Decision
President Donald Trump confirmed Thursday that he will announce his nominee to lead the Federal Reserve on Friday morning, accelerating a decision that could significantly shape U.S. interest rate policy and the broader economy.
The announcement would mark a major turning point for the Federal Reserve as Trump moves to replace current Chair Jerome Powell, following months of disagreement over high interest rates and their impact on economic growth.
Speaking during an appearance at the Kennedy Center, the president said the decision would come sooner than previously expected. He had earlier suggested the announcement would be made next week, but indicated the urgency of the economic moment required faster action.
President Trump has repeatedly argued that elevated interest rates are costing American taxpayers billions and slowing economic momentum.
“We’re paying far too much in interest,” Trump said. “Rates are unacceptably high. The United States should be paying the lowest interest rates anywhere in the world.”
While the White House has not formally identified a frontrunner, Trump has acknowledged that his shortlist has narrowed considerably. He recently signaled that White House economic adviser Kevin Hassett is unlikely to be selected, saying he prefers to keep Hassett in his current role advising the administration.
“I’d like to keep him exactly where he is,” Trump said. “He’s doing a fantastic job.”
Other potential candidates reportedly under serious consideration include Rick Rieder, a senior bond investment executive at BlackRock, whom Trump has described as “very impressive,” as well as current Federal Reserve Governor Christopher Waller and former Fed Governor Kevin Warsh. The names have emerged through recent comments from Trump and senior administration officials.
Trump originally appointed Powell as Federal Reserve chair in 2017, but the two later clashed during Trump’s first term over monetary policy and the pace of interest rate hikes. Trump has consistently maintained that the Fed kept rates too high for too long, placing unnecessary pressure on businesses, homeowners, and retirees.
Powell, for his part, has defended the Fed’s approach, stating that decisions are guided by inflation data, employment trends, and long-term economic stability rather than political considerations.
Earlier this week, Trump again criticized current Federal Reserve policy on Truth Social, arguing that delayed rate cuts are weakening U.S. economic competitiveness and increasing long-term borrowing costs. During a subsequent Cabinet meeting, the president reiterated his belief that a policy shift is urgently needed.
Powell has not publicly stated whether he intends to remain at the Federal Reserve once his term as chair ends in May 2026. In recent remarks, he has said only that he plans to complete his current term and has not addressed any future role beyond that point.
