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Thursday Nov 27 2025 00:00
2 min
While President Trump holds a final list of five candidates for the Federal Reserve Chair position, he indicated last week that he already has someone in mind. "I think I know who my pick is," Trump told reporters, adding that he'd like to replace the current chair, Jerome Powell, whose term ends in May.
U.S. Treasury Secretary Steven Mnuchin is overseeing the interview process and noted there are five strong candidates, suggesting Trump could announce his nominee before Christmas (December 25th). The shortlisted candidates include Federal Reserve Governors Chris Waller and Michelle Bowman, former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, and BlackRock fixed income chief Rick Rieder.
Analysts suggest Warsh has an edge, while Hassett is considered a strong contender given his frequent contact with Trump as an advisor. Waller, could emerge as a compromise candidate.
As Director of the National Economic Council, Hassett advises Trump on economic policy. Hassett has been critical of what he considers the Fed's misjudgment of the inflation surge stemming from stimulus checks during the COVID-19 pandemic and the Biden era.
Waller supports cutting interest rates, expressing concern about a weakening labor market. He sees the slowdown in job growth as driven by both weaker labor demand and a decrease in labor supply due to reduced immigration.
Bowman aligns with the view of lowering interest rates given her concerns about the increasing "fragility" of the labor market. She opposes plans to significantly increase bank capital requirements, advocating for tailored regulations based on banks' risk profiles.
Warsh has been highly critical of the Fed. Warsh believes the Fed should treat tariffs as one-time price changes, a view echoed by the White House and many current Fed members.
Rieder thinks the Fed can and should cut interest rates in December. While acknowledging inflation is above the Fed's target, he sees significant challenges in the labor market.
The final choice for Federal Reserve Chair remains uncertain, with several candidates possessing strong qualifications. However, it's clear that Trump is seeking a nominee aligned with his monetary policy vision, which could impact the central bank's independence and its efforts to combat inflation.
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