As the calendar inches toward 2026, the financial world is abuzz with anticipation—and a fair dose of anxiety—over who will take the helm of the United States Federal Reserve. With Jerome Powell’s term as Fed Chair set to expire in May, President Donald Trump is deep into the process of selecting his successor, a decision that could reverberate through global markets and reshape the economic landscape for years to come.
President Trump, never one to shy away from the spotlight, confirmed on December 18, 2025, that he is actively interviewing three to four candidates for the critical post. Speaking to reporters after signing an executive order at the White House (this one easing marijuana regulations, in a move that grabbed headlines of its own), Trump declared, “I believe all the candidates would be excellent choices.” He stopped short of naming his favorite, but assured the press that a decision would come “in the next few weeks.”
Powell, who has served as Fed Chair since 2018 after being nominated by Trump and later renominated by President Biden, has been a figure of stability during tumultuous times. He’s guided the central bank through the unprecedented COVID-19 crisis, a post-pandemic inflation spike, and periods of intense political pressure. Yet, despite Powell’s reputation for independence and broad respect across party lines, Trump has been a frequent critic, particularly when it comes to the pace of interest rate cuts.
“I’m looking for somebody that will be honest with interest rates ... Our rate should be much lower,” Trump said recently, according to The Motley Fool. His impatience was on full display after the Fed’s December 10 decision to lower its benchmark rate to an annual 3.5-3.75%—the third consecutive cut since September. Even then, Trump was unsatisfied, insisting the cuts should have been “at least doubled.”
The president’s focus on aggressive rate reductions is no secret. He has repeatedly argued that lower rates are the key to easing mortgage costs and spurring economic growth, a stance that has sometimes put him at odds with the Fed’s traditional emphasis on balancing inflation risks. According to The Asia Business Daily, Trump’s selection of the next Fed Chair is widely seen as an opportunity to push for a more dovish monetary policy—one that could have sweeping implications for everything from housing to digital assets.
Among the names swirling in the rumor mill, two stand out: Kevin Hassett, chair of the White House National Economic Council and a longtime Trump ally, and Kevin Warsh, a former Fed Governor with deep experience in central banking. Trump himself stoked speculation in a recent interview with The Wall Street Journal, stating, “Both Kevins are excellent. There are a few other outstanding individuals as well.”
But not everyone is convinced that Hassett, in particular, would bring the necessary independence to the role. As The Motley Fool points out, Wall Street has expressed concerns that Hassett’s current position inside the administration—and his frequent appearances as a pundit defending Trump’s policies—could undermine the Fed’s autonomy and erode market confidence. Hassett has tried to allay those fears, saying, “No, he [the President] would have no weight... His opinion matters if it’s good, if it’s based on data... And then if you go to the committee and you say, well, the president made this argument and that’s a really sound argument, I think, what do you think? If they reject it, then they’ll vote in a different way.”
Another prominent contender, Fed Governor Christopher Waller, met with Trump at the White House on December 17, 2025. Trump described the meeting as productive and praised Waller as “an excellent person” who “has been in that position for a long time.” Yet, as reported by COINOTAG News, the focus of their discussions extended beyond personalities to the labor market and strategies for job growth—issues that will be front and center for the next Fed Chair.
Fed Vice Chair Michelle Bowman, once considered a serious candidate, appears to have fallen out of contention. CNBC reports that Bowman is no longer in the running, and attention has shifted to other potential candidates, including BlackRock executive Rick Rieder, who may be interviewed later in the year.
Amid all the jockeying, the stakes could hardly be higher. As history has shown, the independence of the Federal Reserve is not just a matter of institutional pride—it’s a bulwark against the kind of runaway inflation and market instability that plagued the U.S. economy in the 1970s. Back then, political pressure from Presidents Lyndon Johnson and Richard Nixon led to overly stimulative policies, fueling persistent inflation and one of the most severe bear markets in history.
“If the new Fed Chair takes their cues from the President’s political considerations rather than an independent assessment of the economy, it could be highly damaging,” warns The Motley Fool. The lessons of the past are clear: when inflation rises, the Fed must act decisively to prevent it from spiraling out of control, even if that means making unpopular decisions.
That’s not just ancient history, either. The market sell-offs of 2018 and 2022 were both triggered by rising inflation and interest rates, and 2026 is shaping up to be another year of uncertainty. The S&P 500 Index remains expensive and dominated by a handful of stocks, leaving investors nervous about what comes next. With a midterm election on the horizon and memories of recent bear markets still fresh, the pressure on the next Fed Chair will be immense.
The crypto market, too, is watching closely. As COINOTAG News notes, leadership shifts at the Fed can reprice monetary policy expectations, influencing liquidity and risk appetite across Bitcoin, Ethereum, and other digital assets. A dovish Fed Chair could boost crypto markets by improving liquidity, while a hawkish stance might put pressure on digital assets as investors recalibrate risk.
For now, the debate over the next Fed Chair is less about personalities than about policy direction and the broader rate outlook. Will Trump’s nominee stick to the data and maintain the Fed’s hard-won independence, or will political considerations tip the scales toward easier money and the risk of renewed inflation?
As the clock ticks down to Powell’s departure, investors, economists, and everyday Americans alike are left to wonder: who will guide U.S. monetary policy through the next chapter—and what will it mean for the economy, markets, and their own pocketbooks?
The answer, it seems, will arrive soon enough. But as history has shown, the consequences of that decision could last far longer than any one presidential term.
