Trump says he could still dismiss Powell as the Fed chair selection nears

President Donald Trump hinted that he has a preferred candidate for the next Federal Reserve chair position, but isn’t in a rush to make an announcement—while also pondering whether he might fire the central bank’s current leader, Jerome Powell.

When queried at a Monday press conference whether he had a favorite candidate, Trump stated: “I do, still do — hasn’t changed. I’ll announce him at the appropriate time; there’s plenty of time.”

Trump further noted that Powell ought to step down, and that he “would love to fire him.”

“Maybe I still will,” Trump told journalists at his Mar-a-Lago resort in Florida.

Trump didn’t name his top candidate for the chair role and mentioned that an announcement would come “sometime in January.”

National Economic Council Director Kevin Hassett has been viewed as the leading contender, though Trump has also shown interest in former Fed governor Kevin Warsh. Other finalists in the selection process have included current Fed governors Christopher Waller and Michelle Bowman, as well as BlackRock’s Rick Rieder.

Earlier:

Trump has made many vague — and at times conflicting — comments about his decision-making process for the new central bank leader. Earlier in December, the president said he’d whittled the pool of contenders down to one, but later noted he was considering multiple candidates and has lavished praise on several names from the shortlist.

Trump has long criticized Powell, whom he appointed to head the central bank during his first term. The president has signaled he wants the next chair to cut interest rates more aggressively, as the White House seeks to reduce mortgage costs.

On Monday, he mentioned he was considering a lawsuit against Powell for “gross incompetence” tied to an ongoing renovation project at the Fed. Powell’s term as chair ends in May 2026, but his term on the Fed’s Board of Governors doesn’t expire until 2028.