WASHINGTON — In a move that caught Wall Street and Washington by surprise, President Donald Trump announced Thursday evening that he will reveal his nominee for the next Chair of the Federal Reserve on Friday morning. The announcement, originally expected next week, signals an intensified effort by the administration to reshape U.S. monetary policy and push for a pivot toward significantly lower interest rates.
Speaking at a screening of the film Melania at the White House, the President confirmed the timing of the reveal. “Tomorrow morning,” Trump told reporters when asked when his decision would be made public. The move comes just 24 hours after the Federal Reserve, under current Chair Jerome Powell, voted to pause its rate-cut cycle, leaving the benchmark federal funds rate in the 3.50% to 3.75% range.
The Shortlist: A Clash of Ideologies
Treasury Secretary Scott Bessent has reportedly winnowed the field down to four finalists. Each candidate represents a different approach to the President’s “low-rate” mandate, but all are expected to be more amenable to the administration’s economic vision than the incumbent.
| Candidate | Current/Former Role | Background |
| Rick Rieder | BlackRock Chief Investment Officer | A Wall Street titan who oversees over $2 trillion in fixed income, seen as a pragmatic, market-focused favorite. |
| Kevin Warsh | Former Fed Governor | A critic of the Fed’s balance sheet size, viewed as a “credible independent” who could easily clear Senate confirmation. |
| Christopher Waller | Current Fed Governor | A Trump appointee and hawk-turned-dove who dissented in favor of a rate cut at this week’s meeting. |
| Kevin Hassett | NEC Director | A long-time Trump loyalist and economist, however, Trump has hinted he may prefer to keep him in the White House. |
A Friday Morning Firestorm
The accelerated timeline follows a week of intense friction between the White House and the central bank. On Thursday morning, the President took to social media to blast Powell, labeling him “Jerome ‘Too Late’ Powell” and accusing the Fed of “unacceptably high” rates that hurt the American economy.
“We’re paying far too much interest,” Trump told his Cabinet earlier on Thursday. “We should have the lowest interest rate anywhere in the world.”
The selection of a new Chair is the opening salvo in a broader campaign to reform the Federal Reserve’s independence. While the Chair is only one of 12 voting members on the Federal Open Market Committee (FOMC), the appointment carries immense symbolic weight. The President has argued that the current policy rate should be roughly two to three percentage points lower to stimulate growth and reduce the cost of servicing the national debt.
Market and Political Hurdles
Wall Street remains on edge. While prediction markets have recently favored Rick Rieder due to his deep understanding of bond markets, the transition may not be seamless. Rieder would be the first Fed Chair in modern history without either a PhD in economics or prior experience on the Fed Board—a fact that some analysts warn could lead to a “credibility gap” with the Fed’s internal staff.
On the other hand, Kevin Warsh is seen as the candidate most likely to bridge the gap between Trump’s demands and institutional stability. Warsh has argued that shrinking the Fed’s massive balance sheet would “make space” for lower interest rates, a theory that aligns with the President’s goals while maintaining a veneer of traditional central bank hawkishness.
The road to confirmation, however, is far from certain. Senator Thom Tillis (R-NC), a key member of the Banking Committee, has vowed to block any Fed nominees until a Department of Justice investigation into the central bank’s headquarters renovations is resolved. This probe, which Trump allies have used to increase pressure on Powell, could delay the seating of a new Chair until Powell’s term officially expires in May.
What’s at Stake?
The Friday-morning announcement marks a defining moment for the second Trump administration. If the President chooses a loyalist like Hassett, it would signal a direct challenge to the Fed’s century-long independence. If he chooses a market veteran like Rieder or an institutionalist like Warsh, it may suggest a strategy of “aggressive cooperation” intended to soothe the bond markets while still pushing for the easy-money policies the President believes are vital for his second-term agenda.
As the sun rises over the capital today, the global financial community will be watching to see who is tasked with steering the world’s largest economy through the next four years of “America First” economics.
News Sources and Links
- CBS News: Trump says he’s announcing new Fed chair nominee tomorrow morning
- Bloomberg Law: Trump Says He Will Announce Fed Pick Friday Morning
- Forbes: Trump Says He Will Announce New Fed Chair Friday Morning
- Livemint: Jerome Powell offers advice to successor
- Quartz: Trump attacks Jerome Powell after Fed pauses interest rate cuts
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