The White House said Thursday that no immediate decision has been made about selecting the next Federal Reserve chair, tamping down market speculation after a report suggested that President Donald Trump could name a successor to Jerome Powell as soon as this summer.
“No Federal Reserve chairman decisions are imminent, although the President has the right to change his mind,” the White House told the Financial Times. “The President has many good options for the next Fed chairman.”
The clarification followed a report by the Wall Street Journal on Wednesday that Trump is considering announcing a nominee to succeed Powell as early as this summer, or possibly in the fall — a timeline that would be earlier than usual. Powell’s term ends in May 2026.
The dollar slid as much as 0.7% Thursday following the report, reaching levels last seen in early 2022 against a basket of major currencies before partially rebounding to trade 0.5% lower.
Behind the scenes, Trump has grown increasingly impatient with the Fed’s stance on interest rates, blaming Powell for refusing to cut rates amid rising inflation risks linked to his administration’s tariff policies.
Speaking Wednesday before the Journal report was published, Trump said he had narrowed his choice for Fed chair to “within three or four people” and labeled Powell “terrible.”
Despite the political pressure, Powell has reiterated that the Fed remains focused solely on its dual mandate of full employment and price stability, and that politics do not influence its decisions.
While the White House hasn’t confirmed any names, several figures are believed to be under consideration:
- Kevin Warsh, former Fed governor
- Scott Bessent, Treasury Secretary
- Kevin Hassett, head of the National Economic Council
- Chris Waller, current Fed governor
Waller, notably, said last week that he would support a rate cut as early as July, a position that contrasts with Powell’s more cautious signals about holding rates steady while the effects of tariffs play out.
Trump’s frequent critiques of Powell have sparked speculation that he might name a successor early, installing a kind of “shadow Fed chair” to shape market expectations ahead of Powell’s official departure next year.