Trump: I think I already know my candidate for Federal Reserve Chairman

On Tuesday local time, U.S. President Donald Trump stated that he believes he has selected a candidate for the next Federal Reserve Chair, while claiming that someone is preventing him from firing the current Federal Reserve Chair, Jerome Powell. Trump told reporters in the Oval Office, "I think I know who I would choose." However, he did not disclose who it is. "I really want to replace that person right now, but someone is stopping me from doing it."

U.S. Treasury Secretary Steven Mnuchin, who is responsible for the selection process, stated that he has narrowed down the candidates to the following:

Current Federal Reserve Governor Christopher Waller and Michelle Bowman, former Federal Reserve Governor Kevin Warsh, White House National Economic Council Director Kevin Hassett, and BlackRock executive Rick Rieder.

Trump said, "We have some surprising names, and some conventional candidates that everyone is discussing. We might go the conventional route. It's also nice to occasionally take the politically correct path."

Mnuchin indicated that he plans to submit recommendations to Trump after the Thanksgiving holiday. Trump has publicly discussed this decision and praised some of the candidates on the list, but has remained vague about whether he favors any particular candidate.

The new chair will replace the current Federal Reserve Chair Powell. Trump has repeatedly criticized Powell, believing that he is lowering interest rates too slowly. Powell's term as Federal Reserve Chair will end in May next year, but his term as a Federal Reserve Governor will not end until 2028.

Trump reiterated that he hopes Mnuchin will become the Federal Reserve Chair, but the Treasury Secretary enjoys his current role in the government too much to leave.

The next Federal Reserve Chair is likely to be appointed to a 14-year term as a Federal Reserve Governor starting February 1 next year. The seat currently held by Stephen Miran will be vacated at that time; he is currently on unpaid leave from the White House Council of Economic Advisers.

The market generally believes that the next Federal Reserve Chair will need to carefully balance meeting Trump's demand for lower interest rates with maintaining investor confidence