On December 1, information surrounding the selection of the next Federal Reserve Chairman became even more uncertain.
On November 30th local time, social media circulated a message claiming that "Federal Reserve Chairman Jerome Powell will resign on December 1st, and sources say he will announce this at an emergency meeting at 7 PM Eastern Time on Monday." This information quickly spread across various online media platforms.
As of the time of publication by Yicai, no mainstream media outlets had reported on this matter, nor had any of the so-called "sources" mentioned in the reports appeared. Yicai reporters checked the Federal Reserve's official website and found that Powell's official schedule was not available at 7 PM local time.
Powell was last mentioned by US financial media on November 30. The media still referred to him as the "Federal Reserve Chairman who will step down in the spring of 2026."
Meanwhile, US President Trump again brought up the issue of who would be the next Federal Reserve Chairman. On November 30, aboard Air Force One returning to Washington, he stated that he had decided on his nominee and clearly expressed his expectation that his nominee would implement interest rate cuts. "I know who I'm going to choose, yes," he said.
Hassett described his nomination as "rumor."
Trump has not yet revealed his name as the next Federal Reserve chairman, but he said, "We will announce it."
Trump has repeatedly criticized current Federal Reserve Chairman Jerome Powell, saying he failed to cut interest rates quickly enough and hinting that he wants to find a chairman who is more capable of implementing a rate-cutting policy.
Last week, media outlets, citing sources familiar with the matter, reported that Kevin Hassett, director of the White House National Economic Council and Trump's chief economic advisor, was considered a potential successor to Powell.
On November 30, Hassett declined to comment directly on whether he would be the next Federal Reserve Chair on the American media program "Face the Nation," calling it "rumor."
Specifically, when asked by the host, "You are now considered a leading candidate to succeed Powell, who will step down this spring. Treasury Secretary Bessant, who is in charge of the selection process, said he is conducting final interviews this week. How did your interviews go?" Hassett replied, "To be honest, I'm not sure if the media reports are accurate."
He said, "I feel very honored to compete with so many excellent candidates. What impressed me most after the news broke was that, in my opinion, the real news for the market was that President Trump was about to announce his successor to Powell. And the market reacted very positively—the Treasury auction was very successful, and interest rates fell."
“Therefore, I think the American people can expect President Trump to choose someone who can help them get cheaper car loans and lower-interest mortgages,” he said. “That’s what we’ve seen in the market’s reaction to the rumors about me.”
The host quipped, "When President Trump makes his decision, I think we'll soon know if they're right or wrong. So, today your title is Director of the White House National Economic Council."
In the interview, Hassett mentioned that news of his potential nomination as Federal Reserve Chairman briefly pushed the 10-year U.S. Treasury yield down to below 4%.
Chen Yuewu, managing partner of Golden Eagle Real Estate Investment Company in the United States, has been engaged in real estate transactions in the US for many years. He told reporters that, based on overall data, as of July this year, the US housing market had cooled down and entered a period of adjustment. However, the Federal Reserve resumed its interest rate cutting cycle in September after a hiatus of more than six months. He stated that the market currently expects the Federal Reserve to continue cutting interest rates by about 0.75 percentage points in 2026, which will also promote a further decline in mortgage rates. "If the above interest rate cutting trend continues, it is predicted that US mortgage rates will fall to the range of 5% to 6% in 2026. This will release public demand for housing."
Should Powell resign?
As mentioned earlier, Trump has criticized Powell several times and demanded his immediate resignation. However, there is currently no official information on the Federal Reserve's website regarding Powell's resignation, nor have there been any news reports about it.
Currently, the Federal Reserve's official website lists Powell's schedule for December 1st as follows: He will deliver a speech at the Hoover Institution, a public policy research institution affiliated with Stanford University, at 8 PM local time, with the title of Chairman of the Federal Reserve. Previously, Powell has repeatedly reiterated that he will not resign prematurely and that his term of office is protected by U.S. law.
Powell's term as Federal Reserve Chairman will end on May 15, 2026, and his term as a governor will end on January 31, 2028.
Currently, Bessant is conducting interviews in search of a successor to Powell. He indicated last week that Trump might announce his choice before the Christmas holidays (before December 25th).
According to reports, sources familiar with the matter revealed that Trump trusts Hassett and believes he shares his stance on pushing for more aggressive interest rate cuts by the Federal Reserve. However, analysts warn that Hassett may struggle to unite the Fed's interest rate-setting committee and is more susceptible to pressure from Trump.
Besides Hassett, other finalists included Federal Reserve Governors Christopher Waller and Michelle Bowman, and former Federal Reserve Governor Kevin Warsh. Trump has repeatedly expressed his desire for Bessett to become Federal Reserve Chair, but Bessett has repeatedly declined the offer.
It is worth noting that Trump's nominee must also be confirmed by the U.S. Senate to serve as Federal Reserve Chair.
Hu Jie, a former senior economist at the Federal Reserve and professor at the Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University, previously warned in an interview with CBN that Trump's high-pressure tactics might backfire.
He stated that the Federal Reserve's working principles and culture pride themselves on professionalism and independence, and uphold its professional ethics. "If a governor changes his position due to political pressure, it will be seen as unprofessional and could even damage his personal professional reputation. Especially in the current situation, governors may be more inclined to stand firm in order to maintain the Federal Reserve's independence and professional image, rather than succumb to external pressure."
(Article source: CBN)
