Trump Nears Decision on Next Fed Chair

Source: Coindoo Original Title: Trump Nears Decision on Next Fed Chair Original Link: Washington is edging closer to a major decision that could reshape the direction of US monetary policy.

The White House is preparing to settle on a new leader for the Federal Reserve, with President Donald Trump expected to make his choice sooner rather than later, according to recent remarks from US Treasury Secretary Scott Bessent.

Key Takeaways

• Trump is close to naming the next Fed chair.
• Four finalists remain after months of vetting.
• Markets favor candidates with Fed experience.

Speaking about the process, Bessent indicated that the long-running search has reached its final stretch after months of behind-the-scenes evaluation. Rather than a sudden move driven by market swings, he described a deliberate effort that has been underway since last year, aimed at avoiding surprises as the central bank approaches a leadership transition.

A shortlist shaped by continuity

The field of potential successors has been quietly trimmed over time. What began as a broad list has now been reduced to four names, all of whom have already sat down with Trump for in-depth discussions. Those conversations reportedly focused less on dramatic policy changes and more on how to preserve stability as the current chair’s term expires.

That emphasis reflects growing concern inside the administration about maintaining investor confidence during the handover. With Jerome Powell set to leave office in May, officials are keen to ensure that any leadership change does not unsettle markets already adjusting to shifting rate expectations.

Who markets think has the edge

The remaining candidates span both central banking and asset-management backgrounds. Former Fed governor Kevin Warsh is widely seen as a familiar and predictable option. Rick Rieder brings deep experience from global bond markets, while current Fed governor Christopher Waller represents internal continuity. Longtime Trump adviser Kevin Hassett rounds out the list with a more political-economic profile.

Prediction markets currently lean toward Warsh, but those odds reflect investor sentiment rather than inside knowledge. Still, they underline a broader expectation that the next chair is likely to come from a background that reassures Wall Street rather than challenges it.

Why the timing is sensitive

The decision could land just as the Federal Open Market Committee meets later this month, a gathering where policymakers are expected to keep interest rates unchanged after last year’s easing cycle. Announcing a successor around that time would give markets an early signal about the future tone of policy, even before Powell formally steps aside.

For now, the administration is keeping its cards close. But with interviews completed and the shortlist locked in, the wait may soon be over. When Trump makes his pick, it will not only close a months-long search – it will also set expectations for how aggressively, or cautiously, the Fed steers the US economy in the years ahead.