The search to lead the central bank appears to be at an end
President Trump said on Thursday evening that he would name a successor to Jerome Powell as Federal Reserve chair on Friday.
At a premiere for the documentary Melania, the president revealed his search for a new candidate to lead the central bank was over.
“I’ll be announcing the Fed chair tomorrow morning,” Trump said, indicating he had a candidate already lined up.
At a cabinet meeting yesterday, the president kept up his attacks on the central bank’s stance after it voted to hold rates steady on Wednesday. “We’re paying far too much interest in the Fed. We should have the lowest interest rate anywhere in the world. They should be two points and even three points lower,” he said.
A politicized Fed in the mortgage backdrop
Trump’s shortlist reportedly included National Economic Council director Kevin Hassett, Fed governor Christopher Waller, former governor Kevin Warsh and BlackRock executive Rick Rieder, with Treasury secretary Scott Bessent overseeing the process.
Republican senator Thom Tillis vowed to block any nominee until a Justice Department probe into Powell and the Fed’s headquarters renovation is resolved, signaling a potentially rocky confirmation path.
For housing and mortgage players, the bigger question is whether a new chair would accelerate the easing path already under way.
Samantha Shelton, mortgage broker, president, and founder of Align Lending previously argued that Powell’s exit could bring "significant rate relief" and a stronger lending environment if a successor leaned harder into cuts.
Another analysis suggested Fed reductions are likely to “stretch into 2026,” but warned that leadership uncertainty could cloud the long‑term outlook.
Powell stressed independence and ‘democratic accountability’
Powell, speaking separately a day earlier, appeared to offer parting guidance to whoever would succeed him.
“I would say a couple of things,” he said. “One is stay out of elected politics. Don't get pulled into elected politics. Don't do it. And another is our window into Democratic accountability is Congress. And it is not a passive burden for us to go to Congress and talk to people. It is an affirmative, regular obligation. You earn it with the elected overseers, so it is something you need to work hard at, and I have worked hard at it.”
The Federal Reserve holds rates steady in its first 2026 decision.
— Mortgage Professional America Magazine (@MPAMagazineUS) January 28, 2026
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He also emphasized the institution the next chair would inherit. “The last thing is, it is easy to criticize government institutions in so many ways,” Powell said. “I will tell whoever it is, you are about to meet the most qualified group of people you not only have ever worked with, but you will ever work with. When you meet Fed staff, not everybody is perfect, but there isn't a better cadre of professionals more dedicated to the public well-being than those who work at the Fed.”
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