Trump Prepares to Name Next Federal Reserve Chairman as Powell's Term Ends in May
Jerome Powell's term as Federal Reserve chairman is set to conclude in May, with President Trump planning to announce a replacement in the coming weeks, subject to Senate confirmation.
Among the leading candidates is Kevin Hassett, a 63-year-old Trump loyalist who previously chaired the White House Council of Economic Advisers and currently leads the National Economic Council. Despite a drop in market odds in December, he remains a favored contender, although concerns have been raised regarding his independence and approach to inflation policy.
Another strong candidate is Kevin Warsh, a former Fed governor from 2006 to 2011. While historically hawkish, Warsh is now seen as supporting lower interest rates and a reduction in the Fed's balance sheet. President Trump has publicly mentioned him as a potential choice.
Christopher Waller, a current Fed governor, has increased his visibility after meeting with President Trump. Unlike Hassett and Warsh, Waller lacks close personal ties to the White House but is viewed as a more independent option. His selection could be favorable for financial markets and would create two vacancies on the Fed board when Stephen Miran's term also ends.
Other names discussed include BlackRock executive Rick Reider and Treasury Secretary Scott Bessent.
Ultimately, the appointee will be evaluated by Wall Street amid ongoing discussions about maintaining Fed independence versus aligning with the administration's policy preferences, particularly regarding the trajectory of interest rate cuts.
