President Donald Trump will launch a final round of interviews this week to choose his nominee to succeed Federal Reserve Chair Jerome Powell, the Financial Times reported, kicking off the process that could determine U.S. monetary policy leadership for years
Who’s being interviewed — and who’s leading
According to reporting by the Financial Times and follow-ups from Reuters and the Wall Street Journal, the shortlist includes National Economic Council director Kevin Hassett (widely viewed as the front-runner), former Fed governor Kevin Warsh, current Fed governors Christopher Waller and Michelle Bowman, and BlackRock’s fixed-income chief Rick Rieder. Trump is expected to meet at least one finalist this week alongside Treasury Secretary Scott Bessent.
Hassett — who has been publicly praised by Trump and whose odds have risen in prediction markets — remains the leading candidate, though the White House has continued interviews to complete its vetting.
What the president is looking for
Trump has said he will make support for immediate interest-rate cuts a key test for his nominee, signalling he wants a Fed chief who will move more quickly to loosen policy than recent Fed leaders have. That stance was reiterated in comments this week and reported interviews. Markets and policy analysts have flagged that a chair chosen primarily for a pro-cut stance could increase political pressure on the Fed’s independence.
Timing and process
Jerome Powell’s term as Fed chair expires in May 2026; the president’s nominee must be confirmed by the Senate, a process that can extend for weeks to months. Administration officials and bank analysts say a formal announcement could come in the new year after final interviews are completed.
Markets and policy implications
The selection of a Fed chair matters for financial markets because the Fed sets the federal funds rate and shapes expectations about inflation and growth. Some market participants have expressed concern that a nominee closely aligned with the White House on rapid rate cuts — or someone seen as politically proximate to the president — could weaken perceived central-bank independence and unsettle Treasury markets. Others argue a chair who prioritizes lower rates could support growth and risk assets.
Background and context
- The Treasury secretary, Scott Bessent, has reportedly narrowed a longer candidate list to a handful of names for the president’s consideration.
- Even if replaced as chair, Powell could remain on the Fed’s Board of Governors until his board term ends in 2028 unless he resigns earlier; the transition raises questions about continuity and how quickly policy direction could change.
What to watch next
- Which finalists are granted interviews this week and whether the White House signals a preferred choice publicly.
- Any White House statements clarifying the “litmus test” language and how candidates respond during interviews.
- Market moves in U.S. Treasury yields and risk assets as investors price in the perceived stance of likely nominees.
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