As the high-stakes search for a new leader of the US Federal Reserve draws to a close, the spotlight is on a handful of potential candidates vying to succeed Jerome Powell as the central bank’s chairman. With President Donald Trump expected to make his pick in the coming weeks, the chosen individual will step into the role at a critical juncture, navigating both political pressure and internal disagreements about the path forward for interest rates.
Among the frontrunners is Kevin Hassett, a long-time conservative economist and key economic adviser to the Trump administration. Hassett, 63, served as the chair of the White House Council of Economic Advisers during Trump’s first term and now leads the National Economic Council. While seen as a top contender, Hassett’s staunch loyalty to the president has raised concerns about his ability to act independently at the Fed and sway other policymakers.
Another potential candidate is Kevin Warsh, a former Fed governor who has emerged as a vocal critic of the central bank’s policies. The 55-year-old economist, who serves on the board of UPS and is a fellow at the right-leaning Hoover Institution, has escalated his rhetoric in recent weeks, calling for “regime change” at the Fed. Warsh’s reputation as a “hawkish” policymaker, favouring higher interest rates, has evolved, with him now seen as a voice that would support lower rates in the near term.
Rounding out the list of frontrunners is Christopher Waller, a current Fed governor who was nominated to the central bank’s board by Trump in 2020. Waller, 66, has recently stressed that the Fed has room to lower interest rates even further, a stance that has garnered attention from Wall Street, which views his relative distance from the White House as a positive.
As the decision-making process unfolds, the president’s nominee will face a confirmation battle in the Senate, where questions about their independence and ability to navigate the complex economic challenges will be scrutinized. Ultimately, it may be Wall Street that serves as the final judge of the new Fed chair’s success, as the central bank’s actions will have far-reaching implications for the US economy.