U.S. President Donald Trump said he expects to name the next chairman of the Federal Reserve in early 2026, according to Bloomberg.
Speaking during a White House meeting, he highlighted the administration’s efforts to contain inflation and pointed to improving economic indicators.
“We’ve stopped inflation since January 2025, but there’s still a lot of work to do,” Trump said. “We’ve brought it down to an acceptable level, and we intend to reduce it further. Inflation must stay moderate — otherwise deflation sets in, which is often worse.”
Trump noted that consumer prices for energy and food have eased in recent months, while mortgage conditions have improved — developments the administration sees as signs of stabilization.
Trump Criticizes Powell as Speculation Over Successor Grows
During the discussion, Trump delivered another sharp criticism of current Fed Chair Jerome Powell, arguing that Powell resisted calls for earlier rate cuts.
He pointed to comments made by JPMorgan Chase CEO Jamie Dimon, saying Powell ignored clear signals that monetary easing was needed sooner.
“All of this was achieved despite the incompetent Fed Chairman,” Trump said. “He should have cut interest rates. He’s just a stubborn bull who probably doesn’t like me.”
The president then hinted that the search for the next Fed Chair is already underway:
“We’ll probably name someone in early 2026. I’ve spoken to Scott [Bessent, Treasury Secretary] about that.”
A Key Name Emerges Inside the White House
Trump also hinted directly at who may be the leading candidate:
“I believe the potential Fed Chairman is here too… He’s a respected man. Thank you, Kevin.”
The reference was directed at Kevin Hassett, head of the White House National Economic Council and a key economic adviser.
Reports from late November 2025 already suggested he had become the favored choice for the role.
Michelle Bowman, a current Federal Reserve Governor known for her pro-cryptocurrency position, is also believed to be under consideration — a factor that could shape future policy direction as digital assets gain broader relevance in U.S. financial strategy.
What This Means for Markets and Crypto
Investors have reacted quickly to the latest signals from Washington.
The broader market and the crypto sector have both shown renewed momentum, partly due to expectations that a leadership change at the Fed could lead to more predictable — and potentially more supportive — monetary policy.
Bitcoin and major digital assets moved higher following Trump’s comments, echoing past market behavior where speculation around Fed appointments often triggered notable swings.
- Fed leadership changes historically impact risk assets, especially during periods of elevated inflation or policy transition.
- Crypto markets are highly sensitive to rate-cut expectations, benefiting when investors see lower borrowing costs ahead.
- Hassett’s economic philosophy leans toward pro-growth strategies, which some traders interpret as supportive of more accommodative Fed policy in the long run.
With more than a year left before the appointment, Trump’s signals are likely the start of a long period of speculation — and market reaction — as investors try to anticipate the next chapter in U.S. monetary leadership.
