The search for the next Federal Reserve chair is increasingly shifting toward Wall Street as President Donald $TRUMP signals that his senior economic adviser may remain in the White House.
Trump has suggested that Kevin Hassett, his top economic adviser, should continue serving in his current role. That signal appears to reduce Hassett’s chances of leading the Federal Reserve. Hassett currently serves as Director of the National Economic Council.
Fed Chair Search Shifts Toward Wall Street
In a Bloomberg report, Hassett said Trump has not yet made a final decision on who will lead the central bank, though the president already appears to have a clear preference. During a recent White House event, $TRUMP
told Hassett he wanted him to stay in the West Wing, a remark that dimmed expectations of Hassett moving to the Fed.
Hassett had been widely viewed as a leading contender to replace Jerome Powell, who is expected to step down as Fed chair on May 15. With Hassett seemingly out of the running, attention has now turned to candidates with deep ties to financial markets.
The race is increasingly being seen as a three-way contest between current Fed Governor Christopher Waller, former Fed Governor Kevin Warsh, and Rick Rieder, a senior executive at BlackRock.
Rick Rieder Gains Momentum in the Fed Chair Race
Rieder, a senior managing director at BlackRock, is emerging as a strong contender, according to multiple sources familiar with the process cited by Bloomberg. Those sources believe he may face fewer obstacles during Senate confirmation.
This shift in the Fed chair race comes amid heightened scrutiny of the Federal Reserve. Jerome Powell has recently faced criticism over renovations to the Fed’s headquarters, prompting an investigation that Powell strongly pushed back against. He argued that the probe was intended to pressure the central bank on interest rate decisions.
Lawmakers have also reacted sharply. Members of the Senate Banking Committee warned that future Fed nominees could face intense questioning, raising the stakes for Trump’s eventual choice.
These developments have intensified competition among potential candidates, placing pressure on the administration to balance market confidence with political realities.
Is a Final Decision Near?
Hassett has publicly downplayed any disappointment, saying that serving in the White House remains a significant role. He described Trump’s remarks as complimentary and expressed gratitude for the president’s confidence.
Treasury Secretary Scott Bessent is overseeing the search process and has removed himself from consideration for the position.
As the decision approaches, markets are watching closely. The next Federal Reserve chair will play a critical role in shaping interest rate policy during a pivotal moment for the U.S. economy.