Trump Confirms Nomination of New Fed Chair in Early 2026: Hassett Leads the Race, Long-term Monetary Policy May Shift

U.S. President Trump has officially confirmed that he will announce his nominee for the next Federal Reserve Chair in early 2026, setting a clear timetable for a critical decision that could reshape the long-term direction of U.S. monetary policy. Current White House National Economic Council Director Kevin Hassett is the frontrunner, while Trump has repeatedly criticized incumbent Chair Jerome Powell for being too slow to cut rates, signaling that the new Chair needs to be more “aggressive.” If this personnel change goes through, the new Chair could serve a term of up to 14 years, meaning Trump would have the opportunity to deeply embed his policy philosophy into the Federal Reserve system, with far-reaching implications for global financial markets.

Timeline Set: Unveiling in Early 2026, Countdown to Power Transition Begins

According to a Bloomberg report, President Trump clarified the nomination timetable for the next Federal Reserve Chair during a White House cabinet meeting. He announced that the pick will be revealed in early 2026. This statement temporarily ends weeks of speculation and marks the official start of the countdown for the transfer of one of the world’s most influential financial positions. Incumbent Chair Jerome Powell’s term will end in May 2025.

The Trump administration has repeatedly expressed dissatisfaction with the current pace of Federal Reserve monetary policy. Trump himself has publicly criticized Powell multiple times for acting too slowly on rate cuts and has made it clear that the next Chair must take a more aggressive approach. Previously, Treasury Secretary Scott Bessent was in charge of the selection process and had hinted that a decision might be made around this Christmas. Now, Trump’s latest statement pushes the timeline back slightly but brings greater certainty. Trump even revealed that he already has someone in mind and that the shortlist is down to one person, but he will not reveal the name at this time.

This clear timetable provides both markets and policymakers with definite expectations. For investors, a change in Federal Reserve leadership implies a potential paradigm shift in monetary policy for the next decade; for both political parties, it will be a fierce battle over the central bank’s independence and policy leadership.

Candidate Landscape: Hassett Leads, Who Will Carry the Rate Cut Banner?

With the nomination timetable clear, focus has shifted to who will be the next “dollar chief.” Currently, White House National Economic Council Director Kevin Hassett is considered the most likely candidate. As a core economic advisor to Trump, Hassett’s policy philosophy is highly aligned with the president. His recent comments about being “willing to serve” have been interpreted as a signal he is ready to succeed Powell. If nominated, Hassett is expected to fully implement Trump’s desired faster and deeper rate-cutting cycle.

Of course, there are other strong contenders in the pool. Current Federal Reserve Governors Christopher Waller and Michelle Bowman are being discussed due to their extensive experience within the system. Former Fed Governor Kevin Warsh and BlackRock executive Rick Rieder are also on the potential shortlist. Trump often jokes about nominating Treasury Secretary Bessent, but Bessent has repeatedly declined. This personnel decision is not just a test of individual capability—it’s also a contest between different monetary policy philosophies: the more politically responsive “doves” versus the data-driven “traditionalists.”

Key Facts on Potential Federal Reserve Chair Candidates

Kevin Hassett: Current Director of the White House National Economic Council, core economic advisor to Trump, highly aligned policy stance, representative of the accelerated rate-cut camp.

Christopher Waller: Current Federal Reserve Governor, hawkish on monetary policy, but has deep internal experience and a strong academic background.

Michelle Bowman: Current Federal Reserve Governor, focuses on community banking and financial inclusion, relatively neutral policy stance.

Kevin Warsh: Former Federal Reserve Governor (2006–2011), responded to the 2008 financial crisis, now a Hoover Institution fellow.

Rick Rieder: Global Chief Investment Officer of Fixed Income, oversees fixed income at the world’s largest asset manager, extremely experienced in markets.

Far-Reaching Impact: Fourteen-Year Term, Trump Seeks to Reshape Central Bank’s Long-Term DNA

This nomination is crucial and goes far beyond a routine personnel change because of its potential long-term impact. According to U.S. law, if Trump nominates a candidate from outside the Federal Reserve system, that nominee, once confirmed by the Senate, would receive a full 14-year term as a Fed governor. This means Trump could, with a single appointment, embed his preferred monetary policy bias at the core of the central bank, with an influence lasting well beyond at least the next two presidential terms.

This is undoubtedly a major opportunity for Trump to reshape the Federal Reserve system. Currently, economic policy is at the core of market expectations, and the next Chair will lead a series of key decisions on the rate path, balance sheet size, and financial stability. By confirming that the nomination will be announced in early 2026, Trump has set a clear countdown for investors and policy watchers, all waiting for a new era that may be coming to the Fed. This is not just a change of leadership, but potentially a systematic adjustment in monetary policy priorities and response functions.

Broader Context: The Debate Over Fed Independence and Political Pressure

Whenever the White House discusses Federal Reserve personnel, the debate over central bank independence resurfaces. Fed independence is seen as the cornerstone for maintaining price and financial stability, designed to keep decision-making free from short-term political cycles. However, it is not uncommon in history for presidents to influence monetary policy direction through appointments of governors and chairs. Trump’s move to announce the timetable almost two years in advance and clarify his policy preference has undoubtedly made this pressure more public and earlier than usual.

For the crypto market, a more dovish Fed that is quicker to respond to the administration’s calls for rate cuts is generally seen as positive. Easier liquidity and lower real rates often boost risk asset prices. As a result, the market will closely follow the nomination process, and any signals that the next Fed leader may pursue more accommodative policy will likely be interpreted by crypto markets as a favorable macro backdrop.

Trump has started the countdown for the Federal Reserve’s leadership handover, and a long-term strategy that could shake global financial markets is already underway. No matter who is ultimately chosen, the 2026 nomination is about more than just one person or one position—it is about the monetary tone of the U.S. dollar for the next decade. How will the new Chair balance inflation and growth? How will they respond to political pressure from the White House? All of this will begin to be revealed with the announcement of that name early next year. For crypto market participants, understanding this high-level monetary policy chess game is far more important than tracking short-term price swings.