Trump to Announce New Federal Reserve Chair on Friday: Who Is the Frontrunner to Replace Jerome Powell?
US President Donald Trump has said he will announce his nominee to replace Jerome Powell as Chair of the Federal Reserve on Friday morning.
Trump made the announcement on Thursday (local time), a day after the US central bank decided to keep interest rates unchanged, despite repeated pressure from the Trump administration to raise them.
“I’ll be announcing the Fed chair tomorrow morning,” Trump said while speaking at the Kennedy Center, according to Reuters.
The Federal Reserve’s decision followed three consecutive rate cuts. Trump has consistently criticised the central bank’s monetary policy stance, arguing that interest rates should be adjusted to better support economic growth.
Candidates in the Running to Succeed Jerome Powell
Several prominent names are reportedly under consideration to succeed Powell as the next head of the US central bank. These include:
Kevin Hassett, Director of the White House National Economic Council
Kevin Warsh, former Federal Reserve governor
Christopher Waller, current Fed governor
Rick Rieder, senior executive at BlackRock
Trump’s nominee will be formally sent to the United States Senate for confirmation.
Who Is the Frontrunner for Fed Chair?
In December, The Wall Street Journal reported that Trump was likely to choose between Warsh and Hassett.
Speaking to the newspaper on 12 December, Trump said Warsh was among the leading contenders, adding that both “Kevins” were strong candidates who support lower interest rates. The report also revealed that Trump held a 45-minute meeting with Warsh on 10 December, during which interest rate policy was discussed in detail.
While Hassett has been increasingly described as a frontrunner, Trump’s remarks suggested that Warsh remains firmly in contention.
Who Is Kevin Hassett?
Hassett holds a PhD in economics and is considered a strong candidate due to his long association with Trump and his support for interest rate cuts.
He previously served as a senior economic adviser to Trump from 2017 to 2019 and briefly returned to the role during the COVID-19 pandemic in 2020. In January 2025, Hassett was appointed Director of the National Economic Council.
Other Leading Contenders
Kevin Warsh:
Warsh served as a Federal Reserve governor from 2006 to 2011. According to the BBC, he has been a vocal critic of the Fed’s reliance on economic data and its balance-sheet policies. While he was previously known for a hawkish stance favouring higher rates, he is now seen as more open to near-term rate cuts.
Christopher Waller:
Waller, who was nominated to the Fed by Trump in 2020, was one of the two dissenters in the Fed’s most recent policy decision. He has argued that there is room for further rate cuts, aligning closely with Trump’s views. However, reports suggest he lacks the personal ties that may influence Trump’s final decision.
Rick Rieder:
A veteran Wall Street executive, Rieder has attracted Trump’s attention with proposals to reform the Federal Reserve, according to Bloomberg. His lack of prior experience at the Fed is seen as an advantage by some observers. Prediction market Kalshi currently places the highest odds on Rieder, assigning him a 48% probability of being Trump’s final pick, followed by Warsh at 31%.
What’s Next?
Trump’s announcement on Friday is expected to provide clarity on the future leadership of the US central bank, a decision that could have significant implications for interest rates, financial markets, and the broader economy.
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