President Trump has yet to make a final decision on the next Federal Reserve Chair. After narrowing the candidate list to Kevin Hassett in early December, Kevin Warsh has re-entered the race following a strong interview last week. Wall Street giants and Trump allies are actively lobbying for their preferred candidates, turning the selection process into a fierce battle spanning finance and politics.
According to reports, Federal Reserve Governor Christopher Waller was interviewed by Trump this week and has garnered support from corporate executives. BlackRock executive Rick Rieder is scheduled for an interview at Trump’s private club in the final week of the year, signaling an expanded pool of candidates and intensifying competition.
Insiders reveal that Wall Street figures have been lobbying for Warsh, contacting government officials to secure backing—partly to exclude Hassett from consideration. Critics argue Hassett’s close ties to Trump may undermine his credibility as an independent central bank leader in bond markets.
Market opinions are sharply divided. A quick poll of executives at a New York conference on Wednesday showed 81% support for Waller as Fed Chair, with Hassett and Warsh splitting the remaining votes.
**Key Candidates Face Credibility Concerns** Both frontrunners, Hassett and Warsh, face skepticism. Wall Street critics say Hassett’s current role—defending Trump’s policies and criticizing the Fed on TV—makes him unfit to lead an independent central bank.
Warsh’s perceived eagerness for the job has raised doubts. Some question whether his support for rate cuts and Trump’s economic agenda is genuine, given his months-long advocacy for Fed easing and balance sheet reduction.
While Warsh’s backers argue he’d maintain more independence from the White House than Hassett, Trump has publicly stated that Warsh privately conveyed support for rate cuts.
Former Dallas Fed President Richard Fisher remarked, "I don’t think you get this job unless you’ve made some kind of commitment to President Trump."
**Wall Street Heavyweights Weigh In** JPMorgan CEO Jamie Dimon recently suggested Hassett might push for quicker rate cuts but praised Warsh’s qualifications. Dimon has reportedly communicated similar views to officials while highlighting other candidates’ strengths.
Warsh allies and some Trump officials interpret Dimon’s comments as tacit support for Warsh.
Investor Stanley Druckenmiller, a longtime associate of Warsh and former mentor to Treasury Secretary Mnuchin, hasn’t directly lobbied for Warsh but has expressed support among Wall Street allies.
**Dark Horse Candidate Waller Gains Traction** Waller’s candidacy stands out due to his lack of personal ties to Trump but unique strengths: a rational, consistent stance on rate cuts and a track record of driving Fed reforms.
Supporters note his behind-the-scenes influence, including opposing race-based hiring, scaling back Fed climate initiatives, halting a central bank digital currency in favor of private stablecoins, and overseeing regional Fed budget cuts—aligning with Trump’s policy leanings.
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