Trump's Expected Nomination for Fed Chair Spurs Speculation on Key Contenders
President Trump is anticipated to nominate a new Federal Reserve chair to succeed Jerome Powell, whose term ends in May. The nomination requires Senate confirmation. Kevin Hassett, a Trump loyalist and former chair of the White House Council of Economic Advisers, is currently viewed by traders as the leading contender, although his odds have declined since December. Deutsche Bank economists caution that Hassett may face challenges in garnering wider policymaker support for rate cuts due to persistent inflation worries and his perceived reliance on administration policy.
Kevin Warsh, a former Fed governor, has re-emerged as a potential candidate. Once known for hawkish views, Warsh is now regarded as more supportive of lower interest rates and has family ties to Trump through Ronald Lauder. Christopher Waller, a current Fed governor who recently met with Trump, is also a potential nominee. Seen as a more independent and sensible choice, Waller's distance from the White House has earned him favor in the markets. Should Waller be selected, it may open two seats on the Fed board next year, as Stephen Miran's term concludes.
Other names mentioned include Rick Reider from BlackRock and Treasury Secretary Scott Bessent. Prediction-market signals have fluctuated over time: Hassett led initially, Warsh briefly overtook him, and Waller is currently gaining traction. Analysts emphasize that concerns about credibility and independence remain central, with the final decision likely to be judged by Wall Street.
