President Donald Trump has offered his most significant indication yet regarding a potential new leader for the Federal Reserve.

Trump has consistently criticized the current Fed Chairman, Jerome Powell, accusing him of not reducing interest rates quickly enough, dubbing him ‘too late Powell.’

Speculation is rife as Trump openly considers a successor for Powell, a Trump appointee, even though Powell’s term doesn’t end until May 2026. This has kept financial analysts on alert as the president deliberates on who might assume the Fed’s top position.

During a Cabinet meeting on Tuesday, Trump remarked, “We have an incompetent chairman of the Fed, a real dope. We should reduce rates,” expressing his dissatisfaction with Powell.

The Federal Reserve, which oversees approximately $6.5 trillion, plays a crucial role in implementing monetary policy, supervising financial institutions, and safeguarding American consumers.

The institution frequently decides on raising or lowering interest rates, decisions that significantly influence mortgage prices and borrowing costs.

Federal law protects Fed governors from removal based solely on policy disagreements with the president. The Supreme Court has clarified that the Fed is an independent agency, meaning Trump cannot simply fire Powell before his term expires.

Whoever is chosen to lead the Federal Reserve next is thought to be someone who will more willingly work with the president, as Powell repeatedly has bucked Trump’s demands to lower interest rates. 

President Donald Trump dropped his biggest clue yet on Tuesday about who he will nominate to become the next chairman of the Federal Reserve 

Trump has long said he wants to replace current chairman Jerome Powell, shown above with the president in July

Director of the National Economic Council Kevin Hassett is favored to get the top Fed job

One name that has been floated by the president to fill the job is National Economic Council (NEC) Director Kevin Hassett, who advises Trump on economic issues.

And on Tuesday, Trump seemed to tip his hand, indicating that Hassett is next in line to run the Fed. 

‘Well, I’d say that we probably looked at 10’ candidates, Trump said his hunt for a new Federal Reserve chairman during a Cabinet meeting on Tuesday. 

‘But I think we probably looked at 10 and we have it down to one,’ the president continued, indicating that he has determined who will get the powerful role. 

A decision about who will become the next chairman will come in early 2026, Trump noted. 

Hours later, at a White House event celebrating ‘Trump accounts’ for newborn babies – an initiative that will, in theory, net every child born between 2025 and the end of 2028 $1,000 in government-funded savings account – the president dropped a major hint about the Fed chair role. 

Trump said that a ‘potential’ future chairman of the Federal Reserve was in the room. Hassett stood not too far off.  

‘I guess a potential Fed Chair is here too,’ Trump said. ‘I don’t know, are we allowed to say that?’

‘Thank you, Kevin.’ Trump added, naming the potential candidate by name. 

‘I guess a potential Fed Chair is here too,’ Trump said during a Tuesday White House event. ‘I don’t know, are we allowed to say that? Thank you, Kevin’ 

Trump smiles at Hassett during an Oval Office meeting in September

After Trump’s remarks, the odds of Hassett landing the job skyrocketed on online prediction markets. 

On Kalshi, the NEC director’s odds jumped from 66 percent on Tuesday morning to 83 percent by the afternoon. 

The market move was mirrored on rival prediction site Polymarket, where Hassett similarly now has over an 80 percent chance of being named chairman of the Federal Reserve.