president donald trump said Thursday that he will announce his pick to replace Federal Reserve Chairman Jerome Powell on Friday.

Speaking to reporters on the red carpet for first lady Melania Trump’s new movie, “Melania,” Trump was asked how soon he would name a new Fed chair.

“Tomorrow morning,” said the president. “I will announce the Fed chair tomorrow morning.”

Former Federal Reserve Governor Kevin Warsh has emerged as the leading candidate to replace Powell, meeting with Trump at the White House on Thursday, according to people familiar with the matter.

TRUMP CALLS FED’S POWELL A ‘MORON’ AFTER CENTRAL BANK HOLDS INTEREST RATES STABLE

First lady Melania Trump looks on as President Donald Trump speaks to reporters attending the world premiere of Amazon MGM Studios’ “Melania” at the Kennedy Center in Washington, DC on January 29, 2026. (Brendan Smialowski/AFP via Getty Images)

Warsh served on the Federal Reserve Board of Governors from 2006 to 2011, placing him at the center of the central bank’s response to the 2007-09 financial crisis. During his tenure, he represented the Fed at the Group of Twenty, served as an emissary to the economies of Asia, and oversaw the institution’s internal operations as an administrative governor.

Before joining the Fed, Warsh was a senior economic adviser to President George W. Bush and earlier had a career on Wall Street at Morgan Stanley. He was one of Trump’s top candidates to replace former Fed Chair Janet Yellen in 2017 before Trump ultimately selected Powell. Most recently, Warsh was considered for Treasury secretary before Trump picked former hedge fund boss Scott Bessent.

Trump harshly criticized Powell earlier Thursday, arguing that the US should have significantly lower interest rates “now that even this moron admits that inflation is no longer a threat.”

THE FED KEEPS INTEREST RATES STABLE, PAUSES RATE CUTTING BECAUSE OF TOO MUCH ECONOMIC UNCERTAINTY

Former US Federal Reserve Governor Kevin Warsh has emerged as a possible candidate to replace Federal Reserve Chairman Jerome Powell. (Tierney L. Cross/Bloomberg/Getty Images/Getty Images)

“It is costing the United States hundreds of billions of dollars a year in totally unnecessary and unnecessary interest expense,” Trump wrote on Truth Social. “Because of the large amounts of money flowing into our country because of the tariffs, we should be paying the LOWEST INTEREST RATE OF ANY COUNTRY IN THE WORLD.”

Although Trump appointed Jerome Powell to lead the Federal Reserve in 2017, has since become one of Powell’s most vocal critics, repeatedly urging the central bank to cut rates to stimulate the economy.

Over the past year, Trump has stepped up his pressure campaign, publicly berating Powell and sometimes resorting to personal insults to express his frustration with the Fed’s policy decisions. What began as a dispute over interest rate policy has turned into a full-blown showdown, marking the most difficult period of Powell’s eight-year tenure as Fed chairman.

TRUMP VS THE FEDERAL RESERVE: HOW THE SHOCK REACHED UNCHARTED TERRITORY

President Donald Trump walks behind Federal Reserve Chairman Jerome Powell during an announcement on the Rose Garden of the White House in Washington, DC on November 2, 2017. (Olivier Douliery/Bloomberg/Getty Images/Getty Images)

Earlier this month, the Justice Department opened a criminal investigation to Powell related to his congressional testimony about the Federal Reserve’s ongoing renovation of two buildings in Washington. Powell confirmed the investigation on Jan. 11 in a video statement, calling it “unprecedented” and describing it as another example of what he characterized as Trump’s threats to the central bank.

After days of private consultations with advisers, Powell’s decision to address the investigation publicly marked a marked departure from his usually tight-lipped approach. Appearing before reporters Wednesday for the first time since the investigation began, Powell said he would not respond to the administration’s statements and would not discuss the investigation.

GET THE FOX BUSINESS ANYWHERE CLICK HERE

The showdown comes as the Supreme Court weighs the president’s authority to remove sitting Fed Governor Lisa Cook.

Fox News’ Jacqui Heinrich and Amanda Macias contributed to this report.