Trump to Nominate New Federal Reserve Chair as Powell's Term Ends in May
Jerome Powell's term as Federal Reserve Chair is set to end in May, and President Trump is expected to announce a nominee soon. The nominee must then be confirmed by the Senate.
Kevin Hassett, a Trump loyalist, is seen as the leading contender. However, questions persist about his independence and willingness to cut interest rates.
Former Fed governor Kevin Warsh remains a candidate as well. Although he has a hawkish past, he is now favored for supporting lower rates and advocates for shrinking the Fed's balance sheet. Warsh also has close ties to Trump through businessman Ronald Lauder.
Christopher Waller, a current Fed governor who recently met with Trump, lacks close ties to the White House but is considered more sensible and supportive of further rate cuts. His appointment could potentially free up two seats on the Fed board.
Other potential nominees include Rick Reider from BlackRock and Treasury Secretary Scott Bessent.
The choice of the next Fed Chair faces political pressure and credibility concerns. Markets are closely watching the decision, and Wall Street may ultimately be the final judge of the nominee's success.
