The most powerful economic position in America is up for grabs—and Trump's choice could reshape your wallet, your mortgage, and the global economy. Here's what just leaked.
In a Cabinet meeting that just sent shockwaves through Wall Street, President Donald Trump dropped a bombshell: he's ready to name the next Federal Reserve Chair early next year. But it was his savage takedown of current Fed Chair Jerome Powell—calling him a "stubborn ox, who probably doesn't like your president"—that revealed just how dramatically America's economic policy is about to change.
The Federal Reserve doesn't just set interest rates. It controls the cost of borrowing money for everything from your home mortgage to credit cards to business loans. It influences whether you get a raise or face a layoff. And right now, Trump is about to hand that power to someone new—someone who thinks very differently than Powell about how to run the economy.
The Timeline: From Christmas to Early 2026
Trump's announcement Tuesday offers the clearest timeline yet for one of the most consequential appointments of his presidency. While Treasury Secretary Scott Bessent previously hinted the pick could come as early as Christmas, Trump's "early next year" statement suggests Americans should expect the reveal in January or February 2026.
The timeline matters because Jerome Powell's term as Fed Chair expires in May 2026. That gives markets and economists mere months to prepare for what could be a fundamental shift in how America's central bank operates.
"We'll be announcing somebody, probably early next year, for the new chairman of the Fed," Trump declared during Tuesday's Cabinet meeting, signaling that the selection process—which has considered around 10 candidates—is now complete.
"We have it down to one," Trump confirmed.
The Frontrunner: Kevin Hassett's Moment
According to Bloomberg News, White House National Economic Council Director Kevin Hassett has emerged as the likely successor to Powell. People familiar with the matter suggest Hassett is Trump's preferred choice—though with Trump, nothing is final until it's officially announced.
Hassett isn't a household name, but he's been a fixture in Republican economic circles for years. He previously served as Chairman of Trump's Council of Economic Advisers during the first administration and has been a consistent advocate for lower interest rates and more aggressive stimulus policies.
But here's where it gets interesting: Trump is notorious for last-minute surprises. Even with Hassett as the presumed frontrunner, other finalists remain in contention, including Fed Governors Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh, and BlackRock's Rick Rieder.
Trump has been working closely with Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to vet candidates. In September, he publicly identified Hassett, Warsh, and Waller as his top three choices. He's also repeatedly floated the idea of Bessent taking the role, though the Treasury Secretary has firmly rejected the notion each time.
The Battle Over Interest Rates: What's Really at Stake
To understand why this appointment matters so much, you need to understand Trump's fundamental disagreement with Powell—and what it means for your money.
For months, Trump has relentlessly pressured the Federal Reserve to lower interest rates more aggressively. He's criticized Powell as being "too slow and timid" in pursuing cuts, arguing that keeping rates higher for longer is unnecessarily strangling economic growth and making borrowing more expensive for American families and businesses.
Powell, by contrast, has taken a more cautious approach, worried that cutting rates too quickly could reignite inflation—the very thing that caused pain for millions of Americans when prices surged for groceries, gas, and housing in recent years.
This isn't just an academic debate. When the Fed lowers interest rates:
- Mortgages become cheaper, making homes more affordable
- Business loans get less expensive, potentially spurring hiring
- Credit card rates drop, easing the burden on consumer debt
- The stock market often rallies as companies benefit from cheaper borrowing
- The dollar typically weakens, which can boost exports but make imports pricier
But cut too fast, and inflation can spiral out of control again, eroding purchasing power and destabilizing the economy.
Trump has made clear he wants a Fed Chair who will "move more forcefully to lower rates." Translation: he wants someone who prioritizes economic growth and low borrowing costs over inflation concerns—a fundamentally different philosophy than Powell's.
A Bitter Divorce: Trump vs. Powell
The relationship between Trump and Powell has deteriorated into open warfare. Trump's "stubborn ox" comment on Tuesday was just the latest salvo in a years-long feud.
The irony? Trump himself appointed Powell as Fed Chair in 2017. But as Powell raised interest rates to combat inflation—a move that increased borrowing costs and slowed economic growth—Trump turned on him viciously, at one point even exploring whether he could fire the Fed Chair (the answer: probably not without triggering a constitutional crisis).
Powell's term as Chair expires in May 2026, but he could technically remain on the Fed's Board of Governors for two more years after that. Whether he chooses to stay—and endure more public criticism from Trump—remains to be seen.
Adding to the drama, the White House is currently engaged in litigation over Trump's attempted dismissal of Fed Governor Lisa Cook, highlighting the president's aggressive approach to reshaping the central bank.
Beyond the Chair: Trump's Broader Fed War
Trump's criticism of the Federal Reserve extends beyond interest rate policy. He's blasted the institution for expensive campus renovations and has been vocal about what he sees as the Fed's broader inefficiencies and excessive caution.
Fed Chair and governor appointments typically represent the most direct way for presidents to influence monetary policy while respecting the central bank's independence. But Trump has shown little patience for that traditional independence, treating the Fed more like another executive branch agency that should follow his economic vision.
This matters because the Federal Reserve was designed to be insulated from political pressure. The idea is that monetary policy—decisions about interest rates and money supply—should be made based on economic data rather than political expediency. Central bank independence is considered a cornerstone of economic stability in developed democracies.
Trump's approach threatens to blur those lines in ways that worry economists across the political spectrum.
The Senate Wildcard
Whoever Trump picks will require Senate confirmation. Given Republican control of the Senate, approval seems likely—but it's not guaranteed, especially if Trump chooses a controversial outsider without traditional central banking credentials.
If the selection is someone outside the Fed's current structure, that person would likely receive a 14-year term as a Fed Governor beginning February 1, 2026. That's a long time to shape American monetary policy—longer than most presidents serve.
The stakes couldn't be higher. The Fed Chair's decisions influence:
- Whether you can afford to buy a house
- If your employer can afford to give you a raise
- How much your savings account earns in interest
- The strength of the dollar and America's position in global trade
- Whether inflation stays under control or spirals out of hand
What Happens Next
As financial markets digest Trump's timeline, all eyes now turn to early 2026. Investors, economists, and ordinary Americans will be watching closely to see whether Trump goes with the presumed frontrunner Hassett or delivers one of his signature surprise picks.
The announcement will likely trigger immediate market reactions. If investors believe the new Chair will aggressively cut rates, expect stocks to rally and the dollar to weaken. If there's uncertainty about the nominee's qualifications or approach, volatility could spike.
For Jerome Powell, the countdown has begun. After years of public battles with Trump, his tenure atop the world's most powerful central bank is entering its final chapter. Whether he'll be remembered as a steady hand who fought inflation or a "stubborn ox" who stood in the way of growth will depend largely on who tells the story—and who writes the next chapter.
One thing is certain: the person Trump announces in early 2026 won't just be replacing Jerome Powell. They'll be inheriting one of the most politically charged moments in Federal Reserve history—and their decisions will ripple through every American's financial life for years to come.
The question isn't just who Trump picks. It's whether the Federal Reserve as we've known it—independent, data-driven, insulated from political pressure—can survive what comes next.
Follow ZOSIO for breaking updates on Trump's Fed Chair selection and analysis of what it means for your money.
