President Donald Trump said over the weekend that he has chosen the next Federal Reserve chair, a decision unfolding as affordability pressures continue to mount.
“I know who I am going to pick, yeah. We’ll be announcing it,” Trump told reporters on Sunday evening.
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Likely frontrunners include Trump’s top economic advisor Kevin Hassett, current Federal Reserve Board Governor Christopher Waller and ex-Fed board governor Kevin Warsh.
Hassett told “Fox & Friends Weekend” that he would be “happy to serve” if tapped to succeed Federal Reserve Chairman Jerome Powell.
Powell, who was appointed by Trump in 2017, is slated to complete his term in May 2026.
The looming appointment comes as persistently high living costs test his administration’s economic agenda.
The Fed plays a central role in affordability by setting interest rates that influence mortgage costs, credit card rates, car loans and, ultimately, the pace of inflation.
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Trump, who campaigned on restoring affordability and easing household financial pressure, is now confronting growing voter doubts over whether that promise is being delivered.
Democrats have increasingly leaned heavily on affordability themes in state and local elections this fall and it paid off.
In states like Virginia, New York and New Jersey, where high housing costs and utility bills have squeezed voters, Democratic candidates pointed to Trump’s early economic moves — including his trade policies — to argue his approach is worsening the affordability crisis.
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Last week, Treasury Secretary Scott Bessent said that after interviewing five candidates, he finalized a shortlist and sent it to Trump.
Bessent, who has been interviewing candidates since Labor Day, said he wants “forward-looking, not backward-looking” regulators at the Fed’s helm.
Since Trump’s return to the White House, Powell has become a frequent target of criticism over the economy’s performance.
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Trump has argued that the Fed has not acted aggressively enough to ease affordability pressures on consumers.
His escalating rhetoric has widened the rift between the White House and the central bank, raising questions about how closely he intends to steer Fed policy.
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