President Donald Trump has offered his clearest indication yet regarding a potential successor for Federal Reserve leadership. Trump has frequently criticized the current Chairman, Jerome Powell, whom he appointed, referring to him as “too late Powell” for failing to lower interest rates at the speed Trump desires. With Powell’s term set to conclude in May 2026, the president has hinted at considering a replacement, keeping financial analysts on high alert about the future of the top position at the Federal Reserve.

During a Cabinet meeting on Tuesday, Trump expressed his dissatisfaction with Powell, stating, “We have an incompetent chairman of the Fed, a real dope, we should reduce rates.” The Federal Reserve, which manages approximately $6.5 trillion, plays a crucial role in shaping monetary policy, overseeing financial institutions, and safeguarding American consumers. One of its significant responsibilities includes determining interest rate changes, which can significantly influence mortgage prices and borrowing costs.

Federal law ensures that Fed governors cannot be dismissed based solely on policy disagreements with the president. The Supreme Court has underscored the Federal Reserve’s status as an independent entity, indicating that Trump does not possess the authority to remove Powell before the end of his term. The next Fed leader is expected to align more closely with the president’s economic strategies, as Powell has consistently resisted Trump’s calls for interest rate cuts.

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.

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.