Who will be the next Fed chair?

President Donald Trump says he has chosen the next chair of the Federal Reserve, but he is not yet naming names publicly.

Current National Economic Council director Kevin Hassett is widely expected to be the nominee, said Axios. Trump is not saying. “I’m not telling you, we’ll be announcing it,” he said to reporters. The next chair will replace Jerome Powell, who has “faced months of complaints and demands” from Trump to bring interest rates down more quickly, said Axios.

Powell’s term does not end until May, so he may have to spend the final months of his term with a “shadow chair” peering over his shoulder, said Fortune. Trump officials have signaled their desire to undercut Powell even if he remains in his position. With a shadow chair in place, “no one is really going to care what Jerome Powell has to say anymore,” said Treasury Secretary Scott Bessent to Barron’s last year. The question for Wall Street, then, is “will Powell or his successor hold more sway with the markets?” said Fortune.

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What did the commentators say?

The likely choice of Hassett “appears to be about loyalty” to Trump, said John Authers at Bloomberg. Other possible nominees — including Bessent, as well as current Fed governor Christopher Waller and BlackRock executive Rick Rieder — might feel compelled to “establish themselves as independent from the administration.” But being seen as a Trump loyalist could also force Hassett to prove his independence to “win the confidence of markets.” For now, though, “markets aren’t freaking out at the prospect of a Hassett chairmanship.”

“Thank heavens” for Powell, said Brett Arends at MarketWatch. The latest numbers suggest the U.S. economy is “much stronger than people realized” even with the Fed chairman resisting Trump’s demanded rate cuts. If the president had gotten his way, the “likeliest scenario would be that inflation would be rocketing higher again.” Instead, the Federal Reserve has cut rates just twice this year and indicated another rate cut is unlikely in December. Americans should be grateful the current Fed chair has proven his independence and “refused to be intimidated” by Trump.

What next?

Hassett would have “closer ties to the sitting president” than any modern Fed chair, said Axios. That might mean a quick drop in short-term rates, but long-term rates may stay high if Wall Street comes to believe he is “simply doing Trump’s bidding, with little regard for inflation.” That notion “might be difficult for a pick like Hassett to shake.”

The next chair will face an unusually divided Fed board, said The Wall Street Journal. Fed chairs have ordinarily sought the “broadest possible consensus around rate decisions” and split votes have been rare. No longer. There is a “real prospect of three or more dissenting votes” at December’s meeting, whether Powell decides to pause rate cuts or continue them. “It’s not a slam dunk” that Trump’s choice will dictate policy as much as his predecessors, said Krishna Guha, a former New York Fed executive.