Informed sources reveal that as U.S. President Donald Trump seeks a Fed Chair candidate with a friendly stance while weighing potential congressional opposition, Rick Rieder of BlackRock's prospects for becoming the next Federal Reserve Chairman have recently intensified.
These anonymous sources, commenting on the internal personnel discussions, indicated that Trump met with Rieder on Thursday, and the meeting progressed very smoothly.
Key senators, including Republican Tom Tillis of the Senate Banking Committee, have issued warnings. Following the Justice Department's subpoena to the Fed last week concerning Chair Jerome Powell's remarks on the headquarters renovation project, any Fed nominee put forward by Trump will face heightened scrutiny. Powell's term expires this May; he has claimed this criminal investigation is merely a pretext to punish him for not cutting interest rates quickly enough.
When questioned about the selection process on Friday, Trump stated he already has a preferred candidate in mind but declined to reveal the name. He said, "I think I've got it — it's in my heart."
Some sources familiar with the matter stated that the race for the Fed Chair position has narrowed to four candidates: Rieder, National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller, and former Fed Governor Kevin Warsh.
Hassett was an early frontrunner, a status that persisted until this week when Trump suggested he might be reluctant to move Hassett from his current role. It remains unclear if this comment signals a shift in the internal deliberations or was merely an offhand remark.
In a written statement on Saturday, White House Press Secretary Karine Jean-Pierre stated, "No one knows who President Trump will choose for the Fed Chair except President Trump himself. As the President said recently, he will announce his decision soon."
The Justice Department's decision to issue a subpoena to the Fed a week ago sparked strong backlash, including from Tillis. His committee would be the first to review any Fed Chair nomination, and Tillis has vowed to oppose any Fed-related nominations until the subpoena matter is resolved.
Some insiders indicated that Rieder, BlackRock's Chief Investment Officer of Global Fixed Income, is viewed as a candidate who could more easily secure confirmation. A BlackRock spokesperson declined to comment on matters related to Rieder's potential nomination.
Employment data released earlier this month showed the labor market remained weak at the end of last year, with an uncertain jobs outlook. Economists expect job opportunities to remain limited this year, with wage growth slowing, potentially amplifying voters' cost-of-living concerns ahead of the midterm elections.
Fed officials implemented three consecutive interest rate cuts by the end of 2025 but also signaled they would not rush into further cuts until more data on inflation and the labor market is available. Policymakers are widely expected to hold rates steady at their next policy meeting scheduled for January 27-28.
Rieder has stated that the Fed's independence is "critical," but he also agrees with Treasury Secretary Scott Bessent's view that the Fed could be more "innovative" in how it utilizes its balance sheet.
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