In a highly anticipated announcement, U.S. President Donald Trump revealed that he will unveil his selection for the next chair of the Federal Reserve on Friday. The announcement came during the premiere event for “Melania,” a film centered on First Lady Melania Trump. Trump indicated that the search for Jerome Powell’s successor, a process which began last summer, is nearing its conclusion.
“I’ll be announcing the Fed chair tomorrow morning,” Trump stated. When pressed if he had made a definitive choice, he confidently replied, “I do, I better, otherwise I have to go to work very quickly.”
The selection process for Powell’s replacement commenced in September, initially featuring a diverse 11-candidate pool that included current and former Fed officials, economists, and Wall Street investment professionals. Treasury Secretary Scott Bessent has played a key role in vetting candidates, narrowing the field first to five, and then to four finalists. The last contenders reportedly include former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, current Fed Governor Christopher Waller, and BlackRock’s chief investment officer for fixed income, Rick Rieder.
Market speculation has been rife, with prediction markets fluctuating on who might ultimately secure the role. Initially, Hassett was favored, but then Warsh took the lead, and recently Rieder emerged as a prominent contender. However, the odds shifted once more on Thursday evening, with Kalshi indicating Warsh as an 80% favorite to be nominated.
Trump hinted that his selection is someone who could have easily been appointed years ago, alluding to Warsh’s earlier consideration during his 2017 decision to nominate Powell. Notably, an administration insider disclosed that Warsh was present at the White House ahead of the announcement. Nevertheless, a White House official urged caution regarding speculation, with spokesman Kush Desai stating, “President Trump will make an announcement about his pick for the Federal Reserve at the appropriate juncture. Any and all reporting on the Federal Reserve Chairman nominations process until then is a waste of everyone’s time.”
Meanwhile, current Fed Chair Jerome Powell faced inquiries about his intentions after his term expires in May. Although he has the option to complete his remaining two years as a governor, he refrained from providing a clear response regarding his future.
