Trump drops biggest hint yet on who may replace Powell

President Donald Trump has dropped his biggest hint yet at who may soon lead the Federal Reserve . The president has long railed against current Fed Chairman Jerome Powell, whom he has labeled as 'too late Powell' for not cutting interest rates at the pace Trump wants. Openly floating that he has looked at a replacement for Powell - a Trump appointee - before the chairman's term ends in May 2026, the president has kept financial observers on edge as he mulls who will take the organization's top job.

'We have an incompetent chairman of the Fed, a real dope, we should reduce rates,' Trump said of Powell at a Cabinet meeting on Tuesday. The Federal Reserve manages roughly $6.5 trillion and primarily focuses on implementing monetary policy, supervising and regulating financial firms and protecting American consumers. It also regularly decides whether to raise or lower interest rates that have massive downstream impacts, like the prices of mortgages and borrowing costs.

Federal law protects Fed governors from removal based solely on policy disagreements with the president. The Supreme Court has clarified that the Fed is an independent agency, meaning Trump cannot simply fire Powell before his term expires. Whoever is chosen to lead the Federal Reserve next is thought to be someone who will more willingly work with the president, as Powell repeatedly has bucked Trump's demands to lower interest rates.

One name that has been floated by the president to fill the job is National Economic Council (NEC) Director Kevin Hassett, who advises Trump on economic issues. And on Tuesday, Trump seemed to tip his hand, indicating that Hassett is next in line to run the Fed. 'Well, I'd say that we probably looked at 10' candidates, Trump said his hunt for a new Federal Reserve chairman during a Cabinet meeting on Tuesday.

'But I think we probably looked at 10 and we have it down to one,' the president continued, indicating that he has determined who will get the powerful role. A decision about who will become the next chairman will come in early 2026, Trump noted. Hours later, at a White House event celebrating 'Trump accounts' for newborn babies - an initiative that will, in theory, net every child born between 2025 and the end of 2028 $1,000 in government-funded savings account - the president dropped a major hint about the Fed chair role.

Trump said that a 'potential' future chairman of the Federal Reserve was in the room. Hassett stood not too far off. 'I guess a potential Fed Chair is here too,' Trump said. 'I don’t know, are we allowed to say that?' 'Thank you, Kevin.' Trump added, naming the potential candidate by name.

After Trump's remarks, the odds of Hassett landing the job skyrocketed on online prediction markets. On Kalshi, the NEC director's odds jumped from 66 percent on Tuesday morning to 83 percent by the afternoon. The market move was mirrored on rival prediction site Polymarket, where Hassett similarly now has over an 80 percent chance of being named chairman of the Federal Reserve.