President Donald Trump said on Thursday evening that he will announce his pick to replace Federal Reserve Chair Jerome Powell on Friday morning, fueling renewed market attention to the leadership outlook at the U.S. central bank.
The statement came as Trump spoke with reporters at the premiere of a documentary about the first lady. He did not provide the name of a specific nominee at that appearance, but he stressed his intention to make the selection public before financial markets open on Friday.
"I’ll be announcing the Fed chair tomorrow morning," he told reporters, indicating that a decision has been made after a selection process that the White House described as lasting months.
Powell’s current term is due to expire in May. The president has been openly critical of Powell’s handling of interest-rate policy, saying the Fed has kept rates too high. That criticism has included public calls from the president for more forceful rate reductions, an approach that contrasts with the Federal Reserve’s traditionally independent role in setting monetary policy.
In recent weeks and months, market participants and commentators have speculated about several potential successors. Names repeatedly mentioned include a former Fed governor, a current governor, and an executive at a large asset manager. The individuals most often cited are Kevin Warsh, Christopher Waller and Rick Rieder. The White House, however, has not released a formal shortlist or confirmed any of the names circulating in the press.
The timing of the announcement - slated for early Friday before markets begin trading - ensures that investors will receive the news before the opening of financial markets. That sequence underscores the administration’s awareness of the market sensitivity to leadership at the central bank.
Beyond the immediate naming of a successor, the comments highlight continuing tensions between the president and the Federal Reserve on interest-rate strategy. The president’s public push for aggressive cuts places him at odds with the institution’s customary independence in monetary decisions.
At this stage, the factual record includes the president’s pledge to announce a pick on Friday morning, the setting of his statement at an evening premiere, the absence of a named nominee at that event, the expiration date of Powell’s term in May, the president’s criticism of current policy as too tight, the president’s advocacy for deeper rate cuts, and the list of frequently mentioned potential contenders without any official shortlist confirmed.
Summary
President Trump announced on Thursday evening that he will reveal his choice to replace Federal Reserve Chair Jerome Powell on Friday morning. He confirmed a decision after months of review but did not disclose the nominee. Powell’s term ends in May, and the president has repeatedly criticized the Fed for keeping rates too high while urging more aggressive rate reductions. Several names have circulated as possible successors, though the White House has not confirmed any shortlist.
Key points
- Trump said he will name his Fed chair pick on Friday morning, after announcing the timeline to reporters on Thursday evening.
- Powell’s term expires in May; the president has criticized the Fed’s rate stance and pushed for larger cuts.
- Market-sensitive speculation has focused on Kevin Warsh, Christopher Waller and Rick Rieder, but no formal shortlist has been released.
Risks and uncertainties
- Market volatility - The timing of the announcement before markets open could prompt market reactions; financial markets are specifically implicated.
- Policy uncertainty - A leadership change and the president’s public pressure for aggressive rate cuts introduce uncertainty around future interest-rate policy, affecting bond and equity markets.
- Institutional tension - The president’s stance puts him at odds with the Fed’s independent policymaking role, creating uncertainty about governance and central-bank autonomy.