Rick RiederU.S. President Trump stated on Thursday that he intends to announce his nominee to replace Federal Reserve Chairman Powell next week, as speculation mounts over who will lead the U.S. central bank following Powell’s departure in May.
“We will announce the nominee for Federal Reserve Chairman, and I think it will be someone who can do the job well,” Trump said during his first cabinet meeting of the year, reiterating his consistent stance on significantly lowering interest rates.
The Federal Reserve decided to keep benchmark interest rates unchanged in the range of 3.50%-3.75% after concluding a two-day policy meeting on Wednesday. The Fed plans to cut interest rates three times in 2025. Trump has stated that interest rates should be reduced by two to three percentage points, a level historically associated with economic stagnation or recession.
Data from the U.S. Department of Commerce shows that the annualized GDP growth rate for the third quarter was 4.4%.
Throughout the Trump administration’s months-long formal search for Powell’s successor, the president has been seen leaning toward different candidates, even as he has intensified efforts to influence the Fed’s decisions. The central bank’s independence from political pressure is considered crucial to its ability to control inflation.
In recent months, Trump attempted to dismiss a Federal Reserve governor in a case submitted to the Supreme Court. His Justice Department also launched a criminal investigation into remarks made by Powell regarding building renovations, which the Fed Chair described as a “pretext” to pressure him on monetary policy issues.
Four Candidates on Trump’s Shortlist
There are now only four candidates remaining to succeed Powell, all of whom agree with Trump that interest rates should be lowered—a criterion explicitly set by the president.
Rick Rieder, Chief Investment Officer of Global Fixed Income at Blackrock, has recently emerged as the frontrunner for Trump’s nomination. Having never worked in government or at the Federal Reserve, Rieder would bring an entirely fresh face to an institution the president has accused of harboring deep-rooted political bias.
Former Federal Reserve Governor Kevin Warsh is also considered a contender for this position; he has called for changes to the central bank’s system and hopes to reduce the Fed’s balance sheet, a goal that appears to conflict with Trump’s preference for loose monetary policy. In 2018, Trump nearly selected Warsh for the top position at the Federal Reserve but ultimately chose Powell. For a long time afterward, the president publicly expressed regret about this decision on multiple occasions.
Federal Reserve Governor Christopher Waller is also among the candidates. He was one of the two policymakers who opposed the central bank’s decision to keep interest rates unchanged this week. Waller was the first Fed policymaker to present an economic rationale for lowering interest rates, arguing that tariffs would not lead to inflation and that the economy needed support. These arguments won over many of his colleagues and helped solidify support for last year’s rate cuts.
White House economic advisor Kevin Hassett was once an early favorite for this position, but after Trump indicated he preferred Hassett to remain in his current role, he is now seen as an unlikely candidate. Hassett, an economist, has been an outspoken supporter of many of the president’s unorthodox policies, including high tariffs and immigration crackdowns.