On Thursday, President Donald Trump announced he will reveal his choice for the new Federal Reserve chair on Friday.
During the premiere of “Melania,” a film about First Lady Melania Trump, the president stated that the search for a successor to current Chair Jerome Powell, which began last summer, is nearing completion.
“I will announce the Fed chair tomorrow morning,” Trump mentioned. When asked if he had made a final decision, he responded, “I do, I must; otherwise, I’ll need to get to work very quickly.”
The selection process for Powell’s replacement began in September with an 11-candidate lineup comprising former and current Fed officials, economists, and Wall Street investment experts. Treasury Secretary Scott Bessent evaluated the candidates, narrowing the list to five and then to four.
The final four candidates are believed to be 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.
Prediction markets have been active in speculating on who will secure the position. Hassett had taken the lead for a period, followed by Warsh, and for the last several days, Rieder. However, the situation changed on Thursday evening, with Kalshi now favoring Warsh as the leading candidate at 80%.
Trump remarked that the choice is “someone who could have been there a few years prior.” Warsh is reportedly known to have been a candidate in 2017 when Trump opted to nominate Powell.
A source from the administration informed CNBC that Warsh was present at the White House on Thursday. However, a White House representative dismissed the rumors.
“President Trump will make an announcement regarding his selection for the Federal Reserve at the appropriate time. Any reporting on the nominations for Fed Chairman before then is a waste of everyone’s time,” stated White House spokesman Kush Desai.
As for Powell, he has been hesitant to comment on whether he will continue after his term as chair concludes in May. He has the option to serve the remaining two years of his governor’s term.
