Trump recently revealed something during a cabinet meeting—he’ll likely announce the next Federal Reserve Chair nominee early next year. The current chair, Powell, has his term ending in May next year, and this transition has always been a major focus for the markets.

Interestingly, many previously speculated that Treasury Secretary Bessent might take over, but Trump outright denied that possibility. It seems he already has someone in mind, just not ready to make it official yet.

The position of Fed Chair has a massive impact on the markets; every shift in monetary policy influences capital flows. Over the next few months, speculation about the successor will probably be everywhere, since this decision affects interest rate trends and the liquidity environment for years to come.