Trump says he has made his choice for next Fed chair: ‘I know who I'm going to pick'

Core Viewpoint - President Trump has indicated he will soon announce his choice for the next Federal Reserve chair, aiming to replace Jerome Powell, who has faced criticism for not cutting interest rates quickly enough [1][7]. Group 1: Selection Process - Trump has confirmed he knows who he will pick for the Federal Reserve chair, intensifying focus on Kevin Hassett as a potential nominee [2][3]. - Treasury Secretary Scott Bessent is overseeing the selection process and has interviewed five finalists, including Hassett, Kevin Warsh, Chris Waller, Michelle Bowman, and Rick Rieder [8][10]. - The selection comes amid internal disagreements within the Federal Reserve regarding potential rate cuts in December [9]. Group 2: Market Reactions - Markets reacted positively to Trump's announcement, with interest rates decreasing and a successful treasury auction following the news [4]. - The expectation of a new Federal Reserve chair has led to market optimism, with the 10-year Treasury yield briefly falling below 4% [9]. Group 3: Economic Context - Current economic indicators show inflation remains above target, unemployment has risen to 4.4%, and key economic data has been delayed due to the government shutdown [11]. - Powell's cautious approach to rate cuts has frustrated Trump, who believes the Federal Reserve is hindering economic growth amid rising prices and borrowing costs [11][12].