Key Takeaways
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- Trump will begin final interviews this week, meeting former Fed governor Kevin Warsh first.
- NEC Director Kevin Hassett remains a leading contender, though the renewed interviews suggest the decision isn’t finalized.
- Treasury Secretary Scott Bessent has narrowed the field to five candidates, including two sitting Fed governors.
- Trump continues to criticize current Chair Jerome Powell and is expected to choose someone more aligned with his push for faster rate cuts.
What Happened?
President Trump is preparing to conduct the final round of interviews for the next Federal Reserve chair, beginning with former Fed governor Kevin Warsh. Other contenders—including NEC Director Kevin Hassett, Fed governors Michelle Bowman and Christopher Waller, and BlackRock executive Rick Rieder—are expected to meet with him soon. Interviews previously scheduled for last week were abruptly canceled, reflecting Trump’s ongoing deliberations. Despite publicly hinting he has already chosen, the resumption of interviews signals the decision remains open.
Why It Matters?
The next Fed chair will take over at a sensitive moment: the Fed has been cutting interest rates and faces internal divisions over the path ahead. Trump, who has repeatedly criticized current Chair Jerome Powell for not easing policy aggressively enough, is likely to choose someone who aligns more closely with his pro-growth, pro-cut stance. Markets will be watching closely, as the selection could influence rate expectations, treasury yields, and global monetary policy confidence. The field includes candidates with very different policy temperaments—from experienced insiders like Waller to more market-oriented voices like Warsh.
What’s Next?
Trump aims to announce his pick next month. Interviews could still shift depending on scheduling or changing political dynamics. Once selected, the nominee will face Senate confirmation, where monetary philosophy, independence, and inflation-fighting credibility will be scrutinized. In the meantime, Chair Powell is expected to deliver a third consecutive rate cut this Wednesday—an action that may influence Trump’s final decision.
