(Bloomberg) — President Donald Trump has teased that he has a preferred candidate to be the next chairman of the Federal Reserve System, but is in no rush to make an announcement — while also mulling the possibility of firing current central bank chief Jerome Powell.
“I do, I still do — it hasn’t changed,” Trump said at a news conference Monday when asked if he had a favorite candidate. “I will announce him in due time. There is plenty of time.”
Trump added that Powell “should resign” and that he would “like to fire him.” The president came close to trying to oust Powell in July, but backed off after a backlash from financial markets.
“Maybe I still could,” Trump told reporters at his Mar-a-Lago resort in Florida.
Trump did not specify who his leading presidential candidate is, saying an announcement would be made “sometime in January.”
National Economic Council Director Kevin Hassett was seen as the front-runner, although Trump also expressed interest in former Fed Governor Kevin Warsh. Other finalists in the process include current Fed governors Christopher Waller and Michelle Bowman and BlackRock’s Rick Rieder.
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Trump has made a series of cryptic — and sometimes contradictory — remarks about his decision-making process regarding a new central bank chief. The president said earlier in December that he had narrowed the field to one candidate, but subsequently said he was considering more candidates and praised several names on the short list.
Trump has long criticized Powell, who he picked to head the central bank during his first term. The president has indicated he wants the next chairman to cut interest rates more aggressively as the White House seeks to lower mortgage costs.
The central bank has cut interest rates at each of its last three meetings, but officials indicated in December that they were likely to cut rates just once in 2026.
Trump said Monday he was considering a “gross incompetence” lawsuit against Powell over the ongoing renovation project at the Fed. Powell’s term as chairman is set to end in May 2026, but his term on the Fed’s Board of Governors does not expire until 2028.
Powell has not said whether he will leave when his term as chairman ends. If he stays, Powell would deny Trump the ability to appoint another new Fed board member.
