President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell on Wednesday, putting the spotlight on the future of the central bank’s leadership. His comments come as the White House moves closer to selecting Powell’s successor.
During remarks at the U.S.–Saudi Investment Forum in Washington, Trump said he “would love to fire” Powell and publicly urged Treasury Secretary Scott Bessent to push for faster interest rate cuts.
Trump recounted a conversation in which Bessent told him to allow Powell to finish his term, which ends in May 2026. Trump responded by warning, “The rates are too high, Scott, and if you don’t get it fixed fast, I’m gonna fire your ass.”
He added that Commerce Secretary Howard Lutnick was “more in favor of firing,” suggesting Lutnick would tell him to “get him the hell out.”
Last month, Bessent confirmed that the shortlist to replace Powell has been narrowed to five candidates. Trump said he expects to announce Powell’s successor by the end of the year.
According to multiple reports, the finalists include Fed Governors Christopher Waller and Michelle Bowman, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock executive Rick Rieder.
The White House later attempted to downplay Trump’s remarks. Officials reiterated their “complete confidence” in Bessent and reaffirmed Trump’s commitment to selecting a “new – and competent – chairman of the Federal Reserve.”
Still, the sharper tone and the accelerated selection timeline have moved the succession issue to the center of market attention.
Adam Crisafulli of Vital Knowledge said investors are already trying to handicap the outcome. “Trump could name his Powell replacement at any moment,” he noted.
While several names have circulated, markets view Hassett, Warsh, and Waller as the true front-runners. Crisafulli said Hassett appears the most likely choice, while Waller would be the “best-case outcome” for markets.
He added that although the top candidates lean dovish on rate policy, they are more hawkish when it comes to managing the Fed’s balance sheet. The central bank is expected to resume balance-sheet expansion in the first quarter for liquidity reasons, but in a future crisis there may be “more resistance to deploying the balance sheet in the post-Powell Fed.”
Markets are also watching the December 10 FOMC meeting closely. Crisafulli said two outcomes seem plausible: a rate cut with ongoing internal disagreement, or unchanged rates paired with more dovish messaging.
He concluded that the latter scenario would be the most supportive for equity markets.
