Donald Trump to announce new Federal Reserve chair to replace Jerome Powell on Friday: Who is the frontrunner?

US President Donald Trump on Thursday (local time) said he will announce his pick to replace Federal Reserve Chair Jerome Powell on Friday morning, reported Reuters.

“I’ll be announcing the Fed chair tomorrow morning,” Trump said at the Kennedy Center, the news agency reported.

Notably, Trump’s statement came a day after the Federal Reserve kept interest rates steady, following three consecutive rate cuts.

The president had repeatedly pressed the central bank to raise rates. Fed board member Christopher Waller, who is on Trump’s short list, was one of the two dissenters against the Fed's latest decision.

Who are the candidates being considered?

Several names are reportedly under consideration to succeed Powell as head of the US central bank. They include White House National Economic Director Kevin Hassett, former Fed governor Kevin Warsh, current Fed governor Christopher Waller, and BlackRock executive Rick Rieder.

Trump's nominee will be sent to the Senate for confirmation.

Who is the frontrunner for US Fed chief?

In December last year, The Wall Street Journal reported that Trump was likely to choose either Warsh or Hassett.

Speaking to the publication on 12 December, Trump said: “Yes, I think he (Warsh) is (frontrunner). He thinks you have to lower interest rates. And so does everybody else that I’ve talked to. I think you have Kevin and Kevin. They’re both—I think the two Kevins are great. I think there are a couple of other people that are great,” he said.

The report added that Hassett has been increasingly speculated as the “frontrunner”, but Trump's remark placed Warsh among the top two contenders. The report cited sources who said Trump had a 45-minute meeting with Warsh on 10 December, and “pressed” him for his views on interest rate cuts.

Who is Kevin Hassett?

Hassett, who holds a PhD in Economics, is considered a top contender because of his long association with Trump and his support for interest rate cuts, per reports.

Notably, Hassett was a senior economic adviser to Trump between 2017 to 2019. During the COVID-19 pandemic, he returned to the role briefly in 2020. He was appointed as head of the National Economic Council in January 2025.

Who are the other leading candidates?

• Kevin Warsh, former Fed official: Warsh served as a Federal Reserve governor from 2006 to 2011. According to the BBC, he has been an outspoken critic of the Fed, challenging its heavy reliance on economic data and its use of assets on the balance sheet. Although known for his “hawkish” stance, favouring higher rates while in office, he is now viewed as more supportive of lower rates in the near term.
• Christopher Waller, Fed Governor: Waller is the current Fed official, nominated by Trump in 2020. He recently emphasised that the Federal Reserve has room to lower interest rates further, aligning with Trump’s preferences. However, unlike Hassett and Warsh, he is seen as lacking the personal connections to reach the top of Trump’s list, according to the BBC.
• Rick Rieder, BlackRock executive: With a long career on Wall Street, Rieder has drawn Trump’s attention with his proposals to reform the Fed, as per Bloomberg. He also has an advantage over the other three finalists because he has never worked at the Fed, making him appear less tied to the institution. Notably, prediction market Kalshi has placed top bets (48% probability) on Rieder being Trump's final pick, as per a Reuters report on 27 January.

According to Kalshi, Warsh is second on the betting scale with 31%, followed by Waller and Hasset at around 8% each.

(With inputs from Agencies)