President Donald Trump said he will announce his choice for the next Federal Reserve chair early in 2026. Trump made this statement during a cabinet meeting in Washington, confirming that Jerome Powell’s term as Fed chair will end in May 2026.

Trump has said he already knows who he plans to pick. However, he did not publicly name his choice. Instead, he told reporters that the nomination will be revealed soon.

The president also noted that Treasury Secretary Scott Bessent, who has been leading the search process, does not want the job. Trump did not say whether Bessent would play any role after the nomination.

📋 Process and Potential Candidates

Trump said he has “narrowed the list to one person” but stopped short of naming a candidate.

According to the Reuters report, several names have surfaced in discussions about possible nominees. While the president did not confirm them, these individuals have been mentioned in the broader conversation (without being named by Trump in this article).

Key points from the story include:

• Trump plans to make the nomination announcement early next year.
• Powell’s term as Fed chair will end in May 2026.
• Trump said he knows who he will nominate but did not disclose the name.
• The Treasury secretary heading the selection process said he does not want the job.

This sets the stage for a significant leadership change at the US central bank.

📈 Why This Matters for the Economy

The Federal Reserve chair plays a major role in U.S. monetary policy. This includes decisions on interest rates, inflation, and economic stability. A new chair could influence how the central bank responds to ongoing economic conditions in 2026.

Trump’s announcement timeline adds certainty for markets and businesses that watch Federal Reserve leadership closely. Investors, economists, and global markets often react to signals about central bank direction and leadership before official decisions are made.

For now, markets and analysts are waiting for the formal nomination and the start of the confirmation process.

📊 Next Steps in the Fed Chair Selection

Once Trump announces a nominee, that person must go through a Senate confirmation process. This could involve hearings and votes in Senate committees, followed by a full Senate vote.

Until then, Jerome Powell will continue to serve as Federal Reserve chair. His term stays in place through May 2026, and he will lead the central bank through upcoming policy meetings and economic decisions.

This nomination process is a key moment for U.S. economic leadership as the country plans for monetary policy in the year ahead.