President Donald Trump said in a prime-time address on Wednesday that he will “soon” announce his pick for the next chairman of the Federal Reserve — describing the nominee as “someone who believes in lower interest rates by a lot.” The comments signal the White House’s intent to install a Fed leader more sympathetic to rapid monetary easing, a move that could sharpen debates over the central bank’s independence.
What the president said
Speaking from the White House Diplomatic Reception Room, Trump told viewers he would “soon announce our next chairman of the Federal Reserve, someone who believes in lower interest rates by a lot. And mortgage payments will be coming down,” tying lower policy rates to his broader plan to ease borrowing costs.
Trump has previously said he would announce a nominee “early next year,” but Wednesday’s remarks suggested the administration is moving closer to a decision.
Who’s being considered
Administration insiders and recent press reporting have repeatedly named a short list of possible successors, among them former White House economic adviser Kevin Hassett, former Fed governor Kevin Warsh and current Fed governor Christopher Waller — all viewed by some as more rate-cut friendly than the current leadership. Trump has in public comments said he has been leaning toward names such as Warsh or Hassett.
Context: why this matters
The Fed sets the nation’s short-term interest rate through its policy rate and guides broader financial conditions. The central bank’s decisions affect mortgages, business loans and the pace of inflation. Market participants and policymakers closely watch any sign that the White House would prefer a more accommodative Fed, because aggressive rate cuts can boost borrowing but also risk reigniting inflation.
Jerome Powell, the current Fed chair, has overseen a period of higher interest rates aimed at reining in inflation. Trump’s stated preference for “much” lower rates would mark a clear policy shift from the Fed’s recent stance.
Independence concerns and political reaction
Observers and some former Fed officials warn that close White House involvement in monetary decisions can undermine the central bank’s long-standing independence — a principle many economists say helps maintain credibility against politically motivated short-term easing. Reporting indicates Trump has at times suggested the next chair should consult with him on interest-rate decisions, a view that departs from recent norms of strict operational independence. Critics argue such a relationship could erode confidence in the Fed’s commitment to price stability.
Timeline and next steps
Nomination of a new Fed chair by the president begins a process that requires Senate confirmation. Earlier reporting suggested the White House might make a formal nomination in the early months of 2026; Wednesday’s comments indicate that an announcement could come sooner. Once nominated, the candidate will face confirmation hearings in the Senate Banking Committee before a full Senate vote.
Bottom line
President Trump’s pledge to appoint a Fed chair who strongly favors lower interest rates puts the spotlight on monetary policy and the Fed’s independence. Markets and policymakers will be watching closely for the administration’s formal nomination and for signals about how an incoming chair might balance the tradeoffs between supporting growth and containing inflation.
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