Trump to Announce Next Fed Chair in January...Considers Lawsuit Against Powell

President Donald Trump of the United States announced that he plans to reveal his nominee for the next Federal Reserve (Fed) Chair in January, and reiterated that he may file a lawsuit against current Fed Chair Jerome Powell, thereby increasing pressure on Powell.

According to Bloomberg and other sources, President Trump, during a joint press conference with Israeli Prime Minister Benjamin Netanyahu at Mar-a-Lago in Florida on the 29th (local time), was asked if he had a preferred candidate for Fed Chair. He replied, "I still do. Nothing has changed," reiterating his position.

Donald Trump, President of the United States. Photo by Getty Images Yonhap News

President Trump did not specify who the leading candidate for Fed Chair is, but stated, "I will make an announcement sometime in January."

Currently, Trump's chief economic advisor, Kevin Hassett, Chairman of the White House National Economic Council (NEC), is considered the most prominent candidate for the next Fed Chair. Other names being discussed include former Fed Governor Kevin Warsh, Fed Governor Christopher Waller, Fed Governor Michelle Bowman, and Rick Rieder, Chief Investment Officer (CIO) of Global Fixed Income at BlackRock.

Earlier this month, President Trump said he had narrowed down the list of Fed Chair candidates to one person, but later indicated he was considering several candidates and praised multiple individuals who made the final shortlist.

He once again launched an attack against Chair Powell. President Trump argued that the cost of renovating the Fed building was excessive, stating, "That man (Powell) is simply incompetent. We will probably file a lawsuit against him." He added, "I want to dismiss him," and "I still can do that."

President Trump has previously expressed dissatisfaction with the Fed's failure to cut the benchmark interest rate before September, and mentioned the possibility of a lawsuit in August, claiming that the renovation costs set under Powell's supervision were excessive. In July, he also stated that if abuse of authority by the Chair regarding the Fed's renovation costs is revealed, it could constitute 'just cause for dismissal.'

Chair Powell's term as Fed Chair runs until May of next year, but his term as a Fed Governor continues until 2028. He has not stated whether he will resign after his term as Chair ends. If Powell remains, President Trump would not be able to fill the Fed Governor position with his own appointee. There is speculation that Trump's remarks are part of a strategy to pressure Powell into stepping down early, enabling him to appoint a successor and secure a vacancy on the Fed Board.