Decision on naming next Fed chair not ‘imminent’: White House

The White House stated on Thursday that a decision on naming a successor to Federal Reserve Chairman Jerome Powell is not imminent, despite recent reports suggesting a potential announcement this summer.

A White House official conveyed to AFP, “No decisions are imminent, although the president has the right to change his mind.” The official further added, “The president has many good options to nominate as the next Federal Reserve chairman.”

While Chairman Powell’s term at the helm of the independent central bank concludes in May 2026, a selection and announcement of a successor by this summer or fall would be earlier than typical. However, a Wall Street Journal report late Wednesday indicated that President Donald Trump has considered revealing Powell’s replacement by September or October. The Journal suggested that the President’s apparent dissatisfaction with Powell could prompt an earlier announcement this summer.

Following the report, the dollar saw a decline, losing 0.7 percent against the euro on Thursday. Analysts have raised concerns about the independence of the Federal Reserve should such an early announcement be made, as a likely successor to Powell could potentially influence expectations regarding the trajectory of interest rates even before assuming their new position.

The Wall Street Journal mentioned potential candidates for the role, including former Fed governor Kevin Warsh, National Economic Council director Kevin Hassett, and Treasury Secretary Scott Bessent.

President Trump has consistently voiced his frustration with Chairman Powell’s cautious stance on interest rate reductions, citing what he perceives as benign inflation data. He has publicly criticized the Fed chair, whom he nominated in 2017, as “too late” in acting and a “numbskull” for not aggressively cutting rates.

Conversely, Powell maintains that the Federal Reserve can afford to await further data to understand the economic impact of Trump’s tariffs before adjusting policy. He has previously asserted that the world’s largest economy remains in good condition despite current elevated uncertainty.

Last week, the Federal Reserve opted to hold the benchmark lending rate steady for the fourth consecutive policy meeting, maintaining it within a range of 4.25 percent and 4.50 percent. While the White House has not disclosed a shortlist of candidates, President Trump had previously stated he knew “within three or four people” who he would choose.