Trump's "Very Impressed" Remark Sends BlackRock's Rieder Surging in Fed Chair Probability

Stock News01-23

Following public praise from former US President Donald Trump, expectations for BlackRock's Global Chief Investment Officer of Fixed Income, Rick Rieder, to receive the nomination for Federal Reserve Chair have significantly intensified. Trump stated in an interview on Wednesday that he was "very impressed" with Rieder after a recent meeting. As the term of the current Fed Chair, Jerome Powell, is set to expire in May this year, Rieder has entered the final shortlist of candidates to succeed him. While attending the World Economic Forum in Davos, Switzerland, Trump also revealed that the selection process is nearing its conclusion, indicating the initial pool of up to 11 candidates has now been whittled down to "probably one person."

This statement quickly triggered a market reaction. On the prediction market Kalshi, traders raised the probability of Rieder receiving the nomination to 33%, nearly double the figure from the beginning of the week. Rieder himself has not commented on the matter. Currently, former Federal Reserve Governor Kevin Warsh still leads the field with a probability of approximately 45%, although this number has dropped by about 14 percentage points since Monday. US Treasury Secretary Janet Yellen, who is overseeing the candidate vetting process, has previously indicated that Trump is expected to announce the final decision next week.

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