Fed Chair Search Shifts Toward Wall Street as Trump Signals Preference

The search for the next Federal Reserve chair is increasingly turning toward Wall Street, as President Donald Trump signals that his senior economic advisor may remain in the White House rather than move to the central bank. This development reshapes expectations around who will succeed current Fed Chair Jerome Powell, whose term is set to end on May 15, and highlights growing political and market considerations surrounding the appointment.

Kevin Hassett, Director of the National Economic Council and a key economic advisor to President Trump, had long been viewed as a leading candidate for the Fed chair role. However, recent comments from both Trump and Hassett suggest that his chances have diminished. Trump reportedly expressed his desire for Hassett to continue serving in the West Wing, a statement that dampened speculation about his move to the Federal Reserve. Hassett himself confirmed that no final decision has been made and described Trump’s remarks as complimentary, emphasizing that remaining in the White House is still a significant and influential position.

With Hassett seemingly out of the running, attention has shifted to candidates with strong financial market backgrounds. The race is now widely seen as a three-way contest involving current Fed Governor Christopher Waller, former Fed Governor Kevin Warsh, and Rick Rieder, a senior managing director at BlackRock. Among these, Rieder is reportedly gaining momentum. Sources familiar with the process suggest that his Wall Street experience and perceived pragmatism could make Senate confirmation smoother compared to other contenders.

The evolving Fed chair search comes amid heightened scrutiny of the Federal Reserve following an investigation into Jerome Powell related to the renovation of the Fed’s headquarters. Powell criticized the probe as politically motivated pressure over interest rate policy, while members of the Senate Banking Committee warned that future nominees would face intense questioning. This political backdrop raises the stakes for Trump’s final choice, as the administration must balance market confidence, central bank independence, and political feasibility.

Treasury Secretary Scott Bessent is overseeing the search and has ruled himself out as a candidate. As markets closely monitor developments, the eventual decision on the next Fed chair is expected to have major implications for U.S. interest rate policy and economic stability during a critical period.