The Countdown for the Next Fed Chair
As President Donald Trump nears his decision on who will lead the U.S. Federal Reserve, the race for the next Fed chair has reached its final stage. With Jerome Powell’s term as the Federal Reserve Chair set to end in May 2026, Trump is now interviewing candidates to determine who will guide the central bank through an increasingly volatile economic landscape. Powell’s leadership has been marked by his cautious approach to interest rate hikes, a stance that has drawn sharp criticism from Trump, who has long urged for more aggressive rate cuts.
In recent days, Trump has begun conducting interviews with the five finalists for the position. Among the front-runners are Kevin Hassett, the current director of the National Economic Council, former Fed Governor Kevin Warsh, current Fed Governors Chris Waller and Michelle Bowman, and Rick Rieder, the head of fixed income at BlackRock. Trump has already suggested that he knows who his choice will be, but the final selection will undoubtedly shape the U.S. economy and its monetary policies in the years to come.
The Candidates for the Fed Chair Position
With Powell’s term expiring in May 2026, Trump’s pick for the next Federal Reserve chair is critical in determining the trajectory of U.S. monetary policy. The next chair will be responsible for guiding the central bank through potential inflationary pressures, decisions on interest rates, and financial stability concerns. Below is a closer look at the final candidates:
Kevin Hassett: The Frontrunner with Ties to the Trump Administration
Kevin Hassett, the director of the White House National Economic Council since 2025, is considered by many to be the frontrunner for the Fed chair position. A staunch ally of Trump, Hassett has demonstrated strong alignment with the president’s economic policies, particularly regarding the need for aggressive interest rate cuts.
Hassett has long criticized the Federal Reserve’s handling of inflation following the pandemic, arguing that the central bank has been too slow in adjusting its monetary policies. In November 2025, Hassett told Fox News that if he were leading the Federal Reserve, he would “be cutting rates right now,” citing current economic data that, in his view, supports lower borrowing costs.
In addition to his economic views, Hassett’s ties to the cryptocurrency industry have gained attention. He previously advised Coinbase, one of the largest U.S.-based cryptocurrency exchanges, and holds at least $1 million in Coinbase stock. His involvement with the Coinbase Academic and Regulatory Advisory Council has drawn attention to his familiarity with the rapidly growing digital asset market, a topic that could be increasingly relevant for the Federal Reserve in the coming years.
Kevin Warsh: A Former Fed Governor with Strong Ties to Wall Street
Kevin Warsh, a former Federal Reserve governor, is another top contender for the Fed chair role. Warsh served on the Federal Reserve Board from 2006 to 2011 and was widely regarded as one of the more hawkish voices on the board during his tenure. He has been a strong advocate for a more proactive and aggressive approach to monetary policy, particularly in addressing inflation and financial instability.
Warsh’s background also includes significant experience in the private sector, particularly in Wall Street. He is currently a distinguished fellow at the Hoover Institution and has held leadership roles at several financial firms. Warsh’s Wall Street experience and his more conservative stance on monetary policy could appeal to Trump, especially given the president’s frustration with the Federal Reserve’s cautious approach under Powell.
Chris Waller: The Current Fed Governor with a Steady Hand
Chris Waller, another current Federal Reserve governor, is seen as a more moderate candidate for the role of chair. Having served on the Fed Board since 2020, Waller has built a reputation for supporting gradual, data-driven decisions on interest rates. His steady approach to monetary policy could be seen as a balancing force in the midst of economic uncertainty.
Waller’s background includes significant academic and economic research, particularly in the areas of banking, monetary policy, and financial markets. His experience at the Federal Reserve makes him a strong contender, though his more cautious approach to rate hikes may not align as closely with Trump’s desire for more aggressive policy action.
Michelle Bowman: A Fed Governor with Focus on Community Banks
Michelle Bowman, another sitting member of the Federal Reserve Board, is also in the running for the chair position. Bowman, who has focused much of her work on community banking and financial inclusion, could bring a unique perspective to the leadership of the Federal Reserve. She has emphasized the importance of ensuring that the Fed’s policies are beneficial not only to the large financial institutions but also to smaller, regional banks and under-served communities.
While Bowman has been a relatively moderate voice on the Fed Board, her emphasis on economic inclusivity could resonate with Trump, particularly as the administration looks to balance the needs of Wall Street with those of Main Street. However, her experience with monetary policy is less extensive than some of the other candidates, making her a more unlikely pick for the top job.
Rick Rieder: The Wall Street Veteran with a Global View
Rick Rieder, head of fixed income at BlackRock, brings a wealth of experience from the private sector, making him an intriguing choice for Fed chair. As the head of one of the world’s largest asset management firms, Rieder has vast experience in managing bond markets and navigating global financial conditions. His background in fixed-income investments could provide valuable insight into managing interest rates and inflation.
Rieder’s experience working with global financial markets and institutions gives him a unique perspective on the global economy. However, his ties to Wall Street and the financial industry might raise concerns about potential conflicts of interest, particularly if his appointment were to be perceived as overly influenced by the financial sector.
Trump’s Priorities: Lowering Interest Rates and Navigating Economic Challenges
For Trump, the selection of the next Federal Reserve chair is deeply personal, as it will shape his economic legacy and influence U.S. monetary policy for years to come. Trump has long criticized Jerome Powell for not acting quickly enough to lower interest rates, particularly during the economic challenges brought on by the COVID-19 pandemic. The president has repeatedly stated that Powell was “too late” in cutting borrowing costs, a position that has led to a strained relationship between the two.
As such, Trump’s pick for the next chair will likely prioritize more aggressive rate cuts in the short term, with a focus on stimulating economic growth and managing inflation. Hassett’s vocal support for cutting rates aligns closely with Trump’s economic views, making him a likely frontrunner for the role.
Additionally, Trump’s selection process will be influenced by broader geopolitical concerns, including the evolving role of the U.S. dollar in global markets and the Federal Reserve’s approach to emerging risks such as cryptocurrencies and digital currencies. Hassett’s ties to the crypto industry and his stance on inflation make him a particularly interesting candidate in this context.
A Decision Before Christmas?
While Trump has suggested that he already knows who his pick will be, the final decision is expected to be made in the coming weeks. Treasury Secretary Scott Bessent, who has been leading the interview process, may have a significant influence on the final selection. It’s possible that Trump could announce his choice before Christmas, providing clarity on the future leadership of the Federal Reserve as the U.S. economy heads into 2026.
The stakes for the U.S. economy are high, as the next Fed chair will play a critical role in managing inflation, economic growth, and the stability of financial markets. Whether Trump chooses Kevin Hassett, Kevin Warsh, Chris Waller, Michelle Bowman, or Rick Rieder, the decision will undoubtedly have significant implications for U.S. monetary policy and global economic stability.
