Trump Unveils Timeline for Selecting the Next Federal Reserve Chair

President Donald Trump announced Tuesday he will reveal his pick for the next Federal Reserve chair in early 2026. He also said Treasury Secretary Scott Bessent doesn't want the job. Current Fed Chair Jerome Powell's term ends in May 2026.

Trump made these comments during an administration meeting, giving the first timeline for when he'll name Powell's replacement. The Fed chair position is one of the most powerful economic roles in the US government, with the ability to influence interest rates and monetary policy that affects everything from mortgage rates to stock markets.

The announcement puts markets on notice about potential changes at the central bank. Powell has led the Fed since 2018, initially appointed by Trump during his first presidency. But the relationship between the two has been rocky, with Trump frequently criticizing Powell's interest rate decisions on social media.

By ruling out Bessent, Trump eliminates one potential candidate who might have been seen as a natural fit. Bessent, a hedge fund manager and longtime Trump ally, was confirmed as Treasury Secretary just last week. The Treasury and Fed roles are closely linked but separate - the Treasury Secretary handles government finances while the Fed chair manages monetary policy.

The Fed chair serves a four-year term and needs Senate confirmation. Whoever Trump picks will face the challenge of managing inflation, employment levels, and economic growth during what could be a period of significant policy changes under the new administration.

Markets typically watch Fed chair nominations closely since the position directly affects borrowing costs for businesses and consumers. The early 2026 timeline gives investors and economists months to speculate about potential candidates and their likely approach to monetary policy.