US President Donald Trump has confirmed that he will unveil his choice for the next Federal Reserve Chair on Friday morning, setting the stage for a major shift in US monetary leadership just days after the Fed paused interest rate changes.
US President Donald Trump said on Thursday that he will announce his decision to replace current Federal Reserve Chair Jerome Powell on Friday morning, according to Reuters.
Speaking at the Kennedy Center, US President Donald Trump stated,
“I’ll be announcing the Fed chair tomorrow morning,"
The announcement comes at a crucial time for the US economy, just one day after the Federal Reserve decided to keep interest rates unchanged, following three consecutive rate cuts.
The Fed’s latest policy meeting ended with interest rates remaining unchanged, though the decision was not unanimous. Fed Board member Christopher Waller, one of the potential successors to Powell, was among the two officials who dissented, signaling continued internal debate over the future direction of monetary policy.
This backdrop has intensified market attention on Trump’s upcoming announcement, as investors look for clues about the administration’s preferred stance on interest rates.
Several high-profile names are reportedly under consideration to lead the US central bank. Those being reviewed include:
Kevin Hassett – White House National Economic Director
Kevin Warsh – Former Federal Reserve governor
Christopher Waller – Current Federal Reserve governor
Rick Rieder – Senior executive at BlackRock
Whichever candidate is selected will require Senate confirmation before officially assuming the role.
A Wall Street Journal report published in December indicated that Kevin Warsh and Kevin Hassett had emerged as the top contenders for the role.
At the time, Trump openly discussed Warsh’s prospects, saying,
“Yes, I think he is the frontrunner. He thinks you have to lower interest rates. And so does everybody else that I’ve talked to. I think you have Kevin and Kevin. They’re both — I think the two Kevins are great."
While earlier reports suggested Kevin Hassett held an edge due to his long-standing relationship with Trump, the president’s remarks have firmly placed Warsh back at the center of the race.
Sources cited in the report said Trump met with Warsh for approximately 45 minutes on December 10 to discuss his views on interest rate cuts.
Kevin Hassett holds a Ph.D. in economics and previously served as a senior economic adviser to Trump from 2017 to 2019, with a brief return during the 2020 pandemic. He was appointed head of the National Economic Council in January.
Hassett is widely viewed as aligned with the White House’s preference for lower interest rates, a factor that strengthens his candidacy.
Kevin Warsh served as a Federal Reserve governor from 2006 to 2011. While he was known for a hawkish approach during his tenure, his recent public comments suggest growing support for interest rate reductions.
Warsh has also criticized the Fed’s heavy reliance on economic data models and the extensive use of balance-sheet tools, arguing for a more restrained central bank approach.
Christopher Waller was nominated by Trump in 2020 and has repeatedly stated that the Fed still has room to cut interest rates further, aligning closely with Trump’s economic outlook.
Despite this, reports suggest Waller may rank lower on the shortlist due to fewer personal and political ties to the president compared to other contenders.
Rick Rieder, a senior executive at BlackRock, stands out as the only candidate who has never worked at the Federal Reserve. Supporters argue that this outsider status could help drive meaningful reform at the central bank.
According to the prediction market Kalshi (as of January 27):
Rick Rieder has a 48% probability of being Trump’s final pick
Kevin Warsh follows with 31%
Christopher Waller and Kevin Hassett are both estimated at around 8%
President Trump’s imminent announcement on the next Federal Reserve Chair marks a pivotal moment for US economic policy. With interest rates, inflation control, and market stability at stake, the choice of successor to Jerome Powell will have far-reaching consequences. While Kevin Warsh and Kevin Hassett appear to be leading the race, rising odds for Rick Rieder underscore growing interest in an outsider capable of reshaping the Fed’s direction. As markets await Friday’s announcement, attention will quickly shift to Senate confirmation and the future path of US monetary policy.