On January 12, Rick Rieder, BlackRock's Chief Investment Officer of Global Fixed Income, was interviewed on the trading floor of the New York Stock Exchange. The search for a successor to Federal Reserve Chair Jerome Powell has taken a new turn, with a dark horse candidate emerging: BlackRock's Rick Rieder. Informed sources revealed that although a final decision has not been made, the financial executive's private meeting with President Donald Trump last week left a positive impression on those present. For months, the Trump administration has been considering a long list of candidates to succeed Powell when his term ends in May. Treasury Secretary Scott Bessent is leading the search for this critical economic position and has presented Trump with a shortlist of four final candidates before Powell's term expires: National Economic Council Director Kevin Hassett, former Federal Reserve Governor Kevin Warsh, Federal Reserve Governor Christopher Waller, and BlackRock's chief bond investment manager, Rick Rieder. During a speech at the World Economic Forum in Davos, Switzerland this Wednesday, Trump indicated that the candidate list had been narrowed further. He reiterated his preference for Hassett, long viewed as the frontrunner, to remain in his current position. However, in an interview with CNBC on Wednesday afternoon, Trump stated that Rieder was "very impressive." "I can say the list is down to three, no, two people. Perhaps I can say that, in my mind, it might be down to one person," Trump commented on the shortlist. Nevertheless, Trump has made similar statements in the past only to reverse his decision later, so these remarks may not be final. This indecisiveness highlights the difficulty of the selection process: finding a candidate who is loyal to Trump, acceptable to the markets and Congress, and capable of bridging deep divisions within the Fed to implement the interest rate cuts Trump desires. The White House declined to comment on the Fed chair selection process or specific candidates before the President makes a final decision. A Wall Street Heavyweight Sources said Rieder's meeting coincided with his appearance at the White House for a ceremony honoring the Stanley Cup champion Florida Panthers, which was the final candidate meeting arranged by Trump. Reportedly, during this meeting with Trump in the Oval Office, Vice President JD Vance, White House Chief of Staff Susie Wiles, and Treasury Secretary Bessent were present. White House Personnel Office Director and Deputy Chief of Staff Dan Scavino also attended the meeting. Despite Rieder's high reputation on Wall Street and his frequent appearances on financial television networks to share market insights, his candidacy has largely flown under the public radar. Among the four finalists, Rieder is the only one without prior experience serving at the Fed or in government. He has remained on the Fed chair candidate list since a lengthy meeting with Bessent in New York last September. This "outsider" status is seen as an advantage within the White House: besides Trump's unprecedented criticism of Powell, Trump's economic advisers have repeatedly emphasized that the Fed's operational model urgently needs reform. Rieder's Stance Rieder's televised remarks and commentary reports published by BlackRock have also garnered positive reviews within the Trump administration. Previously, he was not a widely recognized figure in Washington political circles. He has explicitly stated that the U.S. investment climate is favorable under Trump's administration, a trend that will drive accelerated economic growth. Regarding monetary policy, Rieder said last week that concerns about the job market are the top priority, meaning the Fed "should moderately lower policy rates," although Fed officials "might choose to wait for another meeting or so before restarting the rate-cutting process." In an interview with CNBC last week, Rieder argued that the Fed's benchmark rate should be reduced from the current 3.5%-3.75% range to 3%. This implies the potential for several more 25-basis-point rate cuts, compared to the Fed's previously projected plan of only one cut in 2026. He pointed out that high-interest-rate policies have "greatly benefited wealthy older savers" but at the expense of small business owners and low-income groups. He emphasized that rate cuts "will benefit the majority of people across the United States." Trump has publicly accused Powell of being too slow to cut rates and has continuously called for more aggressive easing. The Fed initiated a rate-hiking cycle after inflation surged during the pandemic. In his Davos speech on Wednesday, Trump reiterated that U.S. interest rates should be among the lowest in the world. Whoever Trump ultimately nominates for Fed chair will face a daunting task: presenting a sufficiently compelling economic case to the Fed's 12-person rate-setting committee to justify further multiple rate cuts. Recent public comments from Fed officials indicate a preference to hold rates steady for some time to observe how the economy digests the three rate cuts implemented late last year. Rieder's Career Rieder lacks a traditional central banking background; his career has focused primarily on fixed-income markets and portfolio management. He has been employed at the hedge fund giant BlackRock since 2009. Prior to that, Rieder founded and led R3 Capital Partners, which was later acquired by BlackRock. He also worked at Lehman Brothers for approximately 20 years, leaving around the time of its bankruptcy in 2008. From 2017 to 2024, Rieder served on the Federal Reserve Bank of New York's Investment Advisory Committee on Financial Markets. Additionally, he served as Vice Chair of the Treasury Borrowing Advisory Committee. This committee, composed of senior private-sector figures, meets quarterly with Treasury officials. Cleveland Fed President Beth Hammack chaired this committee before joining the regional central bank.
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