Trump Set To Reveal New Federal Reserve Chair

In a move that has electrified Washington and Wall Street alike, President Donald Trump is poised to announce his nominee for chair of the Federal Reserve on the morning of January 30, 2026, concluding a months-long search that has kept financial markets and political observers on edge. The announcement, which Trump teased during his monthly Cabinet meeting and again at a high-profile event at the Kennedy Center, is expected to set the tone for U.S. monetary policy in the coming years—and could reshape the central bank’s relationship with the White House.

“We are going to be announcing the head of the Fed, who that will be,” Trump said at his Cabinet meeting on January 29, according to The Hill. “It will be a person that will, I think, do a good job.” The president’s pick is set to replace Jerome Powell, whose term as chair ends in May but who could remain on the Board of Governors until early 2028. Powell, originally appointed by Trump, has found himself at the center of a political and legal storm as the administration intensifies its campaign to influence the direction of U.S. interest rates.

Trump has made no secret of his dissatisfaction with Powell’s stewardship of the Fed. In recent weeks, he has ramped up his criticism, accusing Powell of holding interest rates too high and thus stifling economic growth. “Jerome ‘Too Late’ Powell again refused to cut interest rates, even though he has absolutely no reason to keep them so high. He is hurting our Country, and its National Security,” Trump wrote in a pointed Truth Social post, as reported by The Hill. The Federal Open Market Committee had just voted 10-2 to leave the baseline interest rate unchanged at 3.5 percent to 3.75 percent, defying Trump’s persistent calls for deeper cuts.

Speaking to reporters late Thursday, Trump described his chosen nominee as an “outstanding person” who is “very respected” and “known to everybody in the financial world,” according to CBS News. While he has not officially named his pick, speculation has reached a fever pitch. The two front-runners, by Trump’s own admission, have been White House National Economic Council Director Kevin Hassett and former Fed board member Kevin Warsh. However, as Reuters and Bloomberg News report, Warsh appears to have surged ahead after a Thursday meeting with the president at the White House, with prediction markets giving him an 80% chance of securing the nomination.

Kevin Warsh is no stranger to the Federal Reserve, having served as a governor during the tumultuous years of the global financial crisis. He is known for advocating a smaller Fed balance sheet, a stance that could be at odds with Trump’s preference for looser monetary policy and lower rates. Warsh’s call for “regime change” at the central bank has resonated with some in the administration, but also raised eyebrows among those who value the Fed’s traditional independence from political influence.

The list of candidates has included more than just Warsh and Hassett. Rick Rieder, chief investment officer at BlackRock’s global fixed income business, was the odds-on favorite as recently as Wednesday. Rieder, who has never served in government or at the Fed, would represent a break from tradition, bringing an outsider’s perspective to an institution the president has accused of entrenched political bias. Also in contention is Fed Governor Christopher Waller, one of two policymakers who dissented from the recent decision to keep rates steady. Waller has been an early advocate for lower rates, arguing that tariffs would not drive inflation and that the economy needed more monetary support—a position that has won him support among Trump’s economic advisers.

All four leading candidates share at least one thing in common: they support lower interest rates. This aligns with Trump’s explicit criteria for the next Fed chair, as he seeks to goose economic growth ahead of the 2026 election cycle. The U.S. economy grew at a robust 4.4% annualized rate in the third quarter of 2025, according to Commerce Department data, but Trump insists the Fed’s cautious approach is holding the country back.

The president’s efforts to influence the central bank have not stopped at public criticism. In recent months, his administration has launched a criminal investigation into Powell, focusing on cost overruns for renovations at the Fed’s Washington headquarters—a move Powell has called a “pretext” to pressure him over monetary policy. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” Powell said, as reported by CBS News. The White House has denied directing the Justice Department’s actions, but the timing has drawn sharp rebukes from both sides of the aisle.

The legal drama has complicated Trump’s path to installing a new Fed chair. Several Senate Republicans, including Banking Committee member Thom Tillis of North Carolina, have vowed to oppose any new nominees until the investigation into Powell is resolved. The Senate’s role in confirming the next chair is crucial, and the standoff has injected yet more uncertainty into the process.

Adding to the intrigue, Trump has also attempted to remove Biden-nominated Fed board member Lisa Cook, alleging she made false statements on mortgage documents. Cook has fought back in court, citing federal laws that protect board members from removal without cause. The Supreme Court is expected to rule on her case later this year, with oral arguments last week suggesting the justices may allow her to remain for now.

Should Trump’s nominee be confirmed, it would mark a significant shift in the balance of power at the central bank. Currently, only three of the seven board members were initially appointed by Trump, and the chair’s influence—while substantial—remains subject to the collective decision-making of the 12-member Federal Open Market Committee. As Reuters notes, interest rates are set by the committee as a whole, and even a Trump-appointed chair would need to build consensus to move policy in the direction the president desires.

There’s also the question of what happens if Powell chooses to remain on the board after his term as chair ends. Trump’s nominee would likely need to replace Stephen Miran, a White House adviser who was confirmed to a short-term posting on the Fed last year. The next full-term opening on the board won’t arise until January 2028, when Powell’s term as a governor expires.

Despite the political theater, the stakes could hardly be higher. The Federal Reserve’s decisions on interest rates ripple through every corner of the U.S. and global economy, affecting everything from mortgage rates to job growth to the price of groceries. As the world watches for Trump’s Friday morning announcement, one thing is clear: the future of American monetary policy is at a crossroads, and the outcome will shape the economic landscape for years to come.

With the president’s pick imminent and the Senate bracing for a contentious confirmation battle, all eyes remain fixed on the White House and the Federal Reserve—two institutions whose fates are more entwined than ever.