Trump says he will name Fed nominee in coming days, calls Powell a ‘moron’

President Trump said he’s ready to announce his nominee to lead the Federal Reserve, scheduling the announcement for the first week of February.

Mr. Trump has teased the announcement for weeks, saying he whittled down a big list to a handful of candidates to succeed Fed Chair Jerome Powell, whose term ends in May.

“We’re going to be announcing the head of the Fed, who that will be,” Mr. Trump said at Thursday’s Cabinet meeting, adding the big event will occur “next week.”

Mr. Trump’s Fed nominee must be confirmed by the Senate.

Rick Rieder, a BlackRock executive, is a surprise front-runner for the job. Mr. Trump called him “very impressive” after a recent meeting.

The president might want someone like Mr. Rieder, who brings Wall Street credentials to the table, instead of a Washington bureaucrat or academic.

White House National Economic Council Director Kevin Hassett is a contender, though Mr. Trump recently said he might want to keep him in his current job. 

Former Fed Governor Kevin Warsh and current Fed Governor Christopher Waller are in the mix, too.

Mr. Waller voted on Wednesday to reduce the benchmark rate by 0.25%, bucking the consensus of the Federal Open Market Committee.

Mr. Trump scolded Mr. Powell on social media over the Fed’s midweek decision to keep interest rates steady.

“We should have a substantially lower rate now that even this moron admits inflation is no longer a problem or threat,” Mr. Trump wrote. “He is costing America Hundreds of Billions of dollars a year in totally unnecessary and uncalled for INTEREST EXPENSE.”

The Federal Open Market Committee on Wednesday kept its benchmark rate at 3.5%-3.75%.

Central bankers wanted to see how a trio of recent cuts would affect the economy, ignoring Mr. Trump’s push to reduce rates again.

“The Fed rate’s too high, unacceptably high,” Mr. Trump told his Cabinet. 

The Fed is trying to balance lingering concerns about inflation with worries about a sluggish job market.

Mr. Trump says lower rates will help the U.S. flourish alongside his economic agenda of tariffs on foreign goods, deregulation and tax cuts.

“I think 2026 is going to be the year of the Trump boom,” Treasury Secretary Scott Bessent said at the meeting.

The administration says inflation is cooling faster than people thought, so there is no reason to keep rates high compared with other nations.

“The Fed should substantially lower interest rates, NOW! Tariffs have made America strong and powerful again, far stronger and more powerful than any other Nation,” Mr. Trump posted.

Mr. Powell refused on Wednesday to comment on the president’s criticism, though he argued in favor of the Fed’s independence. He said it’s important for central banks in any democratic nation to act without political interference.