It is reported that U.S. President Donald Trump has hinted that he already has a strong personal preference for the next Federal Reserve Chair, but is not in a hurry to announce the choice. At the same time, Trump said that he may still consider dismissing current Fed Chair Jerome Powell.

When asked whether he had a favored candidate for the Fed chairmanship, Trump said at a press conference on Monday: “I do. I still do—it hasn’t changed.” He added, “I’ll announce him at the appropriate time. There’s plenty of time.”

Trump further stated that Powell “should resign immediately” and that he “would very much like to fire him.” The returning U.S. president had come close to removing Powell in July, but backed off after negative reactions from financial markets and warnings from figures such as Scott Bessent that such a move could threaten the Federal Reserve’s independence and disrupt markets.

“Maybe I still could,” Trump told reporters at his Mar-a-Lago resort in Florida.

Trump did not disclose who his preferred candidate is and said the announcement would come “sometime in January.”

White House National Economic Council Director Kevin Hassett, who is considered close to Trump, has long been viewed as a leading contender for the role. Trump has also expressed interest in former Federal Reserve Governor Kevin Warsh. Other names reportedly under consideration include current Fed Governors Christopher Waller and Michelle Bowman, as well as Rick Rieder, a senior executive at asset management giant BlackRock.

It is worth noting that Trump has made multiple vague—and at times contradictory—statements regarding his decision-making process for selecting the next Fed chair. Earlier in December, he said he had narrowed the field to just one candidate, only to later say he was considering multiple contenders and praised several individuals on the shortlist.

Trump has long been a vocal critic of Powell, whom he himself appointed as Fed Chair during his first term. The president has repeatedly stated that he wants the next Fed chair to push more aggressively for interest rate cuts, as the White House aims to significantly lower mortgage costs to stimulate economic growth and bolster voter support ahead of midterm elections.

The Federal Reserve has cut benchmark interest rates at its last three meetings, but Fed officials hinted in December that only one rate cut may be implemented in 2026.

On Monday, Trump also said he is still considering filing a lawsuit against Powell, citing “gross incompetence” related to an ongoing renovation project at the Federal Reserve. Powell’s term as Fed Chair expires in May 2026, though his term as a member of the Board of Governors does not end until 2028.

Powell has not stated whether he intends to step down once his chairmanship ends. Should he remain on the Board, Powell—who is committed to preserving the Fed’s monetary policy independence—would prevent Trump from appointing a new Board member.

Notably, media reports indicate that opposition and concern within Wall Street—especially among bond market participants—are particularly strong regarding the potential nomination of Kevin Hassett. Several major bond investment institutions have reportedly conveyed to the U.S. Treasury that a Hassett-led Fed could face increased market skepticism over its monetary policy independence. There are concerns that he might pursue more aggressive or indiscriminate rate cuts to align with White House preferences, potentially reigniting inflation and triggering a repricing of the term premium, thereby pushing up long-term Treasury yields.

Rising yields on 10-year and longer-dated U.S. Treasuries are considered one of the least desirable outcomes for the Trump administration.

By contrast, multiple senior traders and institutional strategists have said that appointing current Fed Governor Christopher Waller would likely be met with a more positive market response, as he is perceived to offer greater continuity and stronger policy independence. Media reports have likewise described Waller as a preferred choice among market participants due to his reputation for maintaining an independent monetary policy stance.