Overview
- Treasury Secretary Scott Bessent said the shortlist has been cut to four, with Kevin Hassett, Kevin Warsh, Rick Rieder and Christopher Waller reported as leading contenders.
- Jerome Powell remains chair and has signaled he will serve through his term ending in May 2026.
- Trump has stepped up attacks on Powell over interest-rate moves and the Fed’s headquarters renovation, while Powell testified the central bank is paying $2.5 billion, not $3.1 billion as Trump claimed.
- The Federal Reserve approved a 0.25-point rate cut in December, its third of 2025, and meeting minutes released on Dec. 30 showed uncertainty about the path of cuts in 2026.
- Unemployment rose from 3.7% to 4.6% between November 2024 and November 2025, and analysts caution that intensifying presidential pressure could unsettle market and inflation expectations.