In a sudden move, the Trump administration has called off a series of crucial interviews with finalists for the next Chair of the Federal Reserve. This decision comes as President Donald Trump publicly indicated he has already zeroed in on his preferred candidate, throwing a meticulously planned selection process into disarray.
Interviews Cancelled, Process Upended
The White House informed candidates that their scheduled meetings with Vice President JD Vance, set for Wednesday, have been abruptly cancelled. People familiar with the matter confirmed the cancellation, though no official reason was provided. One source cited a scheduling conflict for the Vice President, but it remains unclear if the interviews will be rescheduled at all.
This action directly undermines a structured vetting process led by Treasury Secretary Scott Bessent, who had shortlisted candidates from an initial pool of eleven. The final round was expected to include prominent figures like former Fed governor Kevin Warsh and current governor Christopher Waller. However, the front-runner has consistently been seen as Kevin Hassett, a longtime economic adviser to Trump, who was among those slated to meet with Vance.
Trump's Public and Private Signals
President Trump's comments have consistently short-circuited the formal selection timeline. During a cabinet meeting on Tuesday, December 3rd, he told reporters he had "narrowed down the list of candidates to one." Later the same day, at an event where Hassett was present, Trump pointedly referred to him as a "potential Fed chair," further fueling speculation.
Despite these strong hints, the White House officially maintains an air of mystery. A statement declared, "The truth is nobody knows who President Trump’s next pick for the Fed Chair will be until he makes the announcement himself. Everything until then is pure speculation." Trump himself said he would not reveal his choice until early next year.
Behind the scenes, sources indicate Trump has expressed regret over his initial selection of Jerome Powell, blaming former Treasury Secretary Steven Mnuchin for the recommendation. Hassett himself documented Mnuchin's subsequent ordeal in a 2021 book, noting how gracefully he absorbed presidential criticism for proposing Powell.
A Consequential Decision for the US Economy
The selection of a successor to Jerome Powell, whose term expires in mid-May, is arguably the most significant remaining personnel decision of Trump's second term. The next Fed Chair will inherit a deeply challenging economic landscape.
The Federal Reserve is currently walking a tightrope, balancing the risks of a slowing job market against persistent inflation that has stalled above its 2% target. The rate-setting committee is reportedly divided on how to manage these risks, which are exacerbated by shifts in trade and immigration policy.
Furthermore, the new chair will face direct pressure from President Trump to lower interest rates. While Kevin Hassett appears to be the chosen one, people familiar with the process caution that Trump could still change his mind. They suggest only active intervention from Treasury Secretary Bessent, who has resisted taking the job himself, might alter the course. For Bessent, strongly backing a candidate now risks future blame if Trump becomes dissatisfied with his pick.
The cancelled interviews mark a dramatic pivot towards a seemingly predetermined conclusion, leaving the future leadership of the world's most powerful central bank hanging on a presidential announcement expected in the coming months.
