Trump Says "Next Fed Chair Already Decided"... Announcement Expected Around Davos Forum

"I have made up my mind... Haven't discussed it with anyone yet"
"Hassett is certainly one of the people I like"

President Donald Trump of the United States stated that he has already decided on his nominee for the next Federal Reserve (Fed) Chair, but did not disclose the specific candidate.

In an interview with The New York Times (NYT) conducted on the evening of the 7th (local time) and released on the 8th, President Trump said, "I have already made up my mind," but added, "I have not spoken to anyone yet."

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

When asked about Kevin Hassett, Chairman of the White House National Economic Council (NEC) and a leading candidate for the next Fed Chair, he replied, "I don't want to say," but also remarked, "He is certainly one of the people I like."

President Trump has repeatedly attacked Jerome Powell, the current Fed Chair whose term ends in May this year, and has strongly pressured for interest rate cuts. He has also stated that the next Chair must support rate cuts, and that anyone who disagrees with him could never be appointed to the position. If the next Chair does not follow President Trump's wishes, they could face harsh criticism similar to that directed at Chair Powell. As a result, concerns are mounting over whether the next Chair will be able to maintain the Fed's independence.

In this context, Chairman Hassett, seemingly aware of the controversy over the Fed's independence, stated that President Trump "will have no influence whatsoever" over interest rate decisions, but also said he would listen to the President's opinions.

On the same day, Treasury Secretary Scott Bessent said at the Minnesota Economic Club that President Trump is scheduled to attend the World Economic Forum (WEF, also known as the Davos Forum) in Davos, Switzerland, from January 19 to 23. He added, "It could be right before or after the forum, but I think the announcement (of the Fed Chair nominee) will be made in January."

According to a Reuters report citing sources and U.S. government officials, Secretary Bessent, Secretary of Commerce Howard Lutnick, Secretary of Energy Chris Wright, U.S. Trade Representative (USTR) Jamison Greer, Middle East Envoy Steve Witkoff, and David Sacks, Chairman of the White House Office of Science and Technology Policy, are also expected to attend the Davos Forum with President Trump.

Secretary Bessent stated that there are still four candidates for the Fed Chair position. In addition to Chairman Hassett, the candidates include former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, and BlackRock executive Rick Rieder. Only Rieder has not yet been interviewed; the other three have already interviewed with President Trump, according to Secretary Bessent.

Of the four candidates, Rieder is the only one without Fed experience. When asked whether the lack of Fed experience is an advantage, Secretary Bessent responded, "That is for the President to decide."

Meanwhile, when asked about the current interest rate level, Secretary Bessent replied, "The current rate is significantly higher than the neutral rate, and I don't think we should be pursuing fiscal tightening." When asked about the appropriate level for interest rates, he answered, "Most models would suggest a range of 2.5 to 3.25 percent."