Trump has regularly disparaged Powell for his refusal to sharply cut rates and on Tuesday referred to the Fed chair as “a real dope who should reduce rates”. The US president said on Monday he planned to pick a new Fed chair “early” next year and signalled Hassett was a “potential” contender.

Trump said he has chosen his next Federal Reserve chair but has not announced the nominee. Prediction markets place an 86% chance on Kevin Hassett, head of the National Economic Council and a longtime Trump adviser.