Five Candidates Emerge in the Race to Replace Fed Chair Jerome Powell
The race to replace Federal Reserve Chair Jerome Powell has entered a critical stage, with five candidates reportedly shortlisted, according to a new analysis by Erste Group.
U.S. President Donald Trump and Treasury Secretary Scott Bessent have identified Fed Governors Christopher Waller and Michelle Bowman, White House economic adviser Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock’s head of fixed income Rick Rieder as the main contenders for the position.
According to Erste analyst Maurice Jiszda, Bessent plans to conduct a second round of interviews with these individuals later this month. A reduced list of nominees is expected to be presented to President Trump before Thanksgiving.
Trump has suggested he may announce his decision by the end of the year, an accelerated timeline that would give the next Fed chair-designate time to shape investor expectations on the future path of interest rates, Erste noted.
However, analysts warn that such an early appointment could create friction with current Federal Reserve policymakers, placing Powell’s successor in the difficult position of influencing decisions before formally assuming the role.
Erste’s report also indicated that the new appointee is likely to take over the board seat currently held by Governor Miran, whose term ends in January. This move would allow the incoming chair to participate in rate meetings as early as March and April, before officially taking over the position in May.
Jiszda emphasized the distinct strengths of each candidate:
- Christopher Waller is known for his academic background and support for preventive monetary easing.
- Michelle Bowman brings regulatory expertise and a strong focus on the labor market.
- Kevin Warsh advocates for a modern, flexible monetary policy approach.
- Kevin Hassett remains a close Trump ally, known for pushing for lower interest rates.
- Rick Rieder is highly respected in global financial circles for his market experience.
