President Donald Trump said Thursday he plans to announce his pick to replace Federal Reserve Chair Jerome Powell next week, with Powell set to step aside from the job in May.
Trump said during his first cabinet meeting of the year:
“We’re going to be announcing the head of the Fed … and it’ll be a person that will, I think, do a good job.”
Rates and pressure on the Fed
The Federal Reserve cut rates three times in 2025.
On Wednesday, it held its benchmark rate steady in the 3.50% to 3.75% range after a two-day meeting.
Trump has argued the policy rate should be two to three percentage points lower.
Commerce Department data cited by Reuters showed the economy grew at a 4.4% annualized rate in the third quarter.
Four names on the short list
Reuters reported Trump’s short list has narrowed to four candidates, and all support lower rates.
Rick Rieder, chief investment officer for BlackRock’s global fixed income business, has recently become the betting favorite.
Former Fed Governor Kevin Warsh is also seen as a contender and has called for “regime change” at the central bank and a smaller Fed balance sheet.
Fed Governor Christopher Waller, who dissented this week against holding rates unchanged, is also in the running.
Hassett seen as less likely
White House economic adviser Kevin Hassett was an early front-runner but is now viewed as an unlikely choice after Trump said he would rather keep him in his current post.
In recent months, Reuters noted Trump has also sought to increase pressure on the Fed, including efforts involving a Fed governor and a Justice Department investigation into Powell tied to building renovations.
