In a significant development for global financial markets, US President Donald Trump has indicated that his administration is approaching a final decision on the next Chairperson of the Federal Reserve. The announcement came during an exclusive interview with CNBC, conducted on the sidelines of the prestigious World Economic Forum 2026 in Davos, Switzerland.
Selection Process Nears Conclusion
President Trump revealed that what began as a comprehensive search involving as many as eleven potential candidates in September has now been dramatically narrowed down. "I'd say we're down to three, but we're down to two. And I probably can tell you, we're down to maybe one, in my mind," Trump stated during the televised interview, though he strategically refrained from disclosing the identity of the leading contender.
The Final Contenders
The original candidate pool represented a diverse cross-section of financial expertise, including:
- Past and current Federal Reserve officials
- Prominent economists from leading institutions
- Influential Wall Street investors and executives
Among those believed to have reached the final stages of consideration were former Fed Governor Kevin Warsh, current Governor Christopher Waller, National Economic Council chief Kevin Hassett, and BlackRock's fixed-income head Rick Rieder. Trump specifically mentioned Rieder as having conducted the most recent interview, describing him as "impressive" while acknowledging the strong qualifications of all remaining candidates.
Administration Dynamics and Shifting Preferences
The selection process, led by Treasury Secretary Scott Bessent, has seen notable shifts in recent weeks. Kevin Hassett, who had emerged as a frontrunner for the position, appears to have been redirected by presidential preference. "I like actually keeping him where he is," Trump remarked, suggesting that Hassett's continued leadership at the National Economic Council takes precedence over his potential appointment to the Federal Reserve.
Trump's Critique of Current Leadership
With Jerome Powell's tenure as Fed Chair concluding in the near future, Trump addressed questions about Powell potentially remaining at the central bank in a different capacity. The President's response was notably critical: "We live with the cards you're dealt. If that happens, his life won't be very, very happy, I don't think, by doing it. I think he wants to get out. He has not done a good job."
This criticism aligns with the Trump administration's increasingly confrontational stance toward the current Fed leadership. Recent developments include the issuance of subpoenas related to the central bank's Washington headquarters renovation, suggesting potential legal challenges that could extend beyond Powell's tenure.
Implications for Monetary Policy
The selection of the next Federal Reserve Chair carries profound implications for:
- Interest rate decisions affecting global financial markets
- Inflation management strategies during economic transitions
- Regulatory approaches to banking and financial institutions
- International economic coordination through central bank partnerships
As the decision timeline accelerates, financial analysts worldwide are closely monitoring these developments, recognizing that the leadership transition at the world's most influential central bank could reshape monetary policy directions for years to come. The final announcement, expected in the coming weeks, will undoubtedly trigger significant market reactions and policy reassessments across global financial centers.
