U.S. President Donald Trump announced that he expects to name the next chairman of the Federal Reserve in early 2026. This statement was made during a White House meeting where he highlighted the administration's efforts to control inflation and pointed to improving economic indicators as signs of progress.
“We’ve stopped inflation since January 2025, but there’s still a lot of work to do,” Trump stated. “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.”
The President noted that recent months have seen a decrease in consumer prices for energy and food, alongside improved mortgage conditions. The administration views these developments as indicators of economic stabilization.
Trump Criticizes Current Fed Chair Amidst Succession Speculation
During the meeting, President Trump reiterated his criticism of current Fed Chair Jerome Powell, asserting that Powell had resisted calls for earlier interest rate reductions. Trump referenced comments made by JPMorgan Chase CEO Jamie Dimon, suggesting that Powell had ignored clear indications that monetary easing was required sooner.
“All of this was achieved despite the incompetent Fed Chairman,” Trump remarked. “He should have cut interest rates. He’s just a stubborn bull who probably doesn’t like me.”
The President then indicated that the process of selecting a successor is already in motion:
“We’ll probably name someone in early 2026. I’ve spoken to Scott [Bessent, Treasury Secretary] about that.”
Potential Successor Identified
President Trump also hinted at who might be the leading candidate for the position:
“I believe the potential Fed Chairman is here too… He’s a respected man. Thank you, Kevin.”
This reference was directed at Kevin Hassett, who serves as the head of the White House National Economic Council and is a key economic adviser. Reports from late November 2025 had already suggested that Hassett had emerged as the favored choice for the role.
Additionally, Michelle Bowman, a current Federal Reserve Governor known for her pro-cryptocurrency stance, is reportedly under consideration. Her potential appointment could influence future policy direction as digital assets become increasingly relevant in U.S. financial strategy.
Market Implications and Cryptocurrency Outlook
Investors have responded promptly to the latest signals originating from Washington. Both the broader market and the cryptocurrency sector have experienced renewed upward momentum, partly driven by the expectation that a change in Federal Reserve leadership could lead to more predictable and potentially more favorable monetary policies.
Bitcoin and other major digital assets saw an increase in value following Trump’s comments. This market reaction mirrors past behavior where speculation surrounding Federal Reserve appointments has often triggered significant price swings.
- •Changes in Federal Reserve leadership have historically influenced risk assets, particularly during periods of high inflation or policy transitions.
- •Cryptocurrency markets are notably sensitive to expectations of interest rate cuts, often benefiting when investors anticipate lower borrowing costs.
- •Kevin Hassett's economic philosophy generally favors pro-growth strategies, which some market participants interpret as potentially supportive of more accommodative Federal Reserve policies in the long term.
With over a year remaining until the official appointment, President Trump's indications are likely the beginning of an extended period of market speculation and reaction as investors attempt to anticipate the future direction of U.S. monetary leadership.