Trump: Considering suing Powell for "serious dereliction of duty," candidate for the next Federal Reserve Chairman may be announced in January

On Monday local time, U.S. President Trump hinted that he has a candidate in mind for the next chairman of the Federal Reserve, but he is not in a hurry to announce it. He also reiterated that he might fire the current Federal Reserve Chairman Jerome Powell.

Trump stated that he would announce the Federal Reserve chairman candidate at the appropriate time, indicating that there is plenty of time, possibly announcing the successor to Powell in January. At a news conference on Monday, when asked if he had a preferred candidate, Trump said:

Yes, I do, I still do, that hasn't changed. I will announce it at the right time, there is still plenty of time.

Trump did not disclose who his favored candidate is, only stating that he would announce the decision sometime in January.

On Monday, Trump also mentioned that he is considering suing Powell over a renovation project being undertaken by the Federal Reserve, citing "gross incompetence." Trump stated that Powell "should resign" and openly expressed his desire to "fire him." He told reporters at his Mar-a-Lago estate in Florida, "Maybe I still could do that now."

Currently, Kevin Hassett, the Director of the National Economic Council, is seen as one of the frontrunners for the next Federal Reserve chairman; however, Trump has also expressed interest in former Federal Reserve Governor Kevin Warsh. Other candidates include current Federal Reserve Governors Christopher Waller and Michelle Bowman, as well as Rick Rieder from BlackRock.

Trump has made vague and even contradictory statements regarding the decision-making process for the new Federal Reserve chairman. Earlier this month, he stated that the candidate pool had narrowed down to one person, but later claimed he was still considering multiple candidates and praised several on the shortlist.

Trump has long criticized Powell—who was appointed as Federal Reserve chairman during his first term. Trump has made it clear that he hopes the next chairman will be more aggressive in cutting interest rates to help the White House lower mortgage costs.

Powell's term as Federal Reserve chairman will end in May 2026, while his term as a member of the Federal Reserve Board will not expire until 2028