Trump Set to Announce Federal Reserve Chair Nominee Today
United States President Donald Trump has confirmed that he will announce his candidate to replace outgoing Federal Reserve Chair Jerome Powell on Friday morning, according to a Reuters report. The announcement, made during a conversation with reporters at the Kennedy Center, where he attended a movie screening with his wife Melania Trump, has sparked intense speculation about the future leadership of the US central bank.
Kevin Warsh Emerges as Leading Contender
Speculation is rife that Donald Trump's rumoured nominee will be Kevin Warsh, a former Federal Reserve Governor. Once selected, Warsh will require confirmation by the US Senate to finalize the appointment. Despite his longstanding reputation as an inflation hawk, Kevin Warsh has increasingly aligned himself with the Trump administration, particularly as it pressured the central bank to adjust interest rates amid tariff impacts, as noted in a Bloomberg report.
Four Contenders Vie for the Prestigious Position
Among Donald Trump's top contenders for the Fed chair post are Christopher Waller, a current Fed Governor; Kevin Hassett, the National Economic Council Director; Rick Rieder, a BlackRock executive; and Kevin Warsh. Bloomberg reported today, citing sources, that it is the former Fed governor Warsh who has made the cut. Interestingly, prediction market Kalshi has placed top bets, with a 48% probability, on Rieder being Trump's final pick, according to a Reuters report from 27 January. Warsh follows with a 31% probability, while Waller and Hasset each have around 8%.
One source informed Bloomberg that Kevin Warsh visited the White House on 28 January, though neither the White House nor Warsh responded immediately to queries on the matter. Trump's comments to reporters further fueled speculation about Warsh's potential appointment. "A lot of people think this is somebody that could’ve been there a few years ago," the US president remarked, hinting at Warsh's longstanding consideration for the role.
Who is Kevin Warsh? A Profile of the Leading Candidate
Kevin Warsh, aged 55, is a former Federal Reserve Governor who served on the US central bank’s Board of Governors from 2006 to 2011. He is known for his close ties to Donald Trump and has advised the president on economic policy, as highlighted in the Bloomberg report. According to a Wall Street Journal report, Warsh previously served as an economic advisor to the George W. Bush administration and has extensive experience working on Wall Street.
An AP report noted that when appointed to the Fed's governing board in 2006 at age 35, Warsh became the youngest Fed governor in history. Currently, he is a fellow at the Hoover Institution and a lecturer at the Stanford Graduate School of Business. Notably, Warsh also made the top two in 2017 when Donald Trump ultimately selected Jerome Powell, making him the only candidate to appear twice on Trump's finalist list, as added by the WSJ report.
Jerome Powell's term as Fed Chair ends in May this year, but he is not obligated to leave the Fed's Board of Governors until 2028, per a Reuters report. Trump has expressed disappointment in his appointment of Powell, stating, "I think I have somebody that I like the best. I like all of them, but I want to be careful because I was given a bad recommendation." The WSJ noted that then-Treasury Secretary Steven Mnuchin recommended Powell in 2017.
Other Leading Candidates in the Race
Kevin Hassett, National Economic Council Director: Hassett holds a PhD in Economics and is considered a top contender due to his long association with Trump and his support for interest rate cuts. He served as a senior economic adviser to Trump from 2017 to 2019 and briefly returned to the role in 2020 during the COVID-19 pandemic. He was appointed head of the National Economic Council in January 2025.
Christopher Waller, Fed Governor: Nominated by Trump in 2020, Waller is a current Fed official who recently emphasized that the Federal Reserve has room to lower interest rates further, aligning with Trump’s preferences. However, according to the BBC, he is seen as lacking the personal connections to reach the top of Trump’s list compared to Hassett and Warsh.
Rick Rieder, BlackRock executive: With a long career on Wall Street, Rieder has drawn Trump’s attention with his proposals to reform the Fed, as per Bloomberg. He holds an advantage over the other finalists because he has never worked at the Fed, making him appear less tied to the institution.
Key Takeaways from the Fed Chair Selection Process
- Kevin Warsh, a former Fed governor, is a leading candidate to replace Jerome Powell as Fed Chair, with his nomination expected to be announced today.
- Warsh's previous nomination in 2017 highlights his longstanding relevance in Federal Reserve discussions and his repeated consideration by the Trump administration.
- Trump's dissatisfaction with Jerome Powell could significantly influence his selection process for the new Fed Chair, potentially favoring candidates like Warsh who align closely with his economic policies.
- The confirmation process by the US Senate will be crucial in finalizing the appointment, adding another layer of scrutiny to this high-stakes decision.
