Tue, 23 Dec 2025

Tue, 23 Dec 2025 Who are the frontrunners for the top Fed job?

Donald Trump is due to name a new leader of the Federal Reserve at a tricky moment.
The search for a new Federal Reserve chairman is nearing its end, with President Donald Trump expected to announce his choice in the coming weeks. The selected individual will face significant challenges, including internal disagreements and pressure from Trump himself on interest rates. Trump has expressed desire for lower borrowing costs and has put unusual pressure on the Fed, raising questions about the independence of whoever succeeds Jerome Powell. A nominee would then go to the Senate for confirmation. Several individuals are in the running for the position, with Kevin Hassett seen as a top contender. As a conservative economist and key Trump adviser, Hassett's allegiance to the president has been questioned by analysts, who worry he may not act independently at the Fed. However, Deutsche Bank economists have noted that Hassett might struggle initially to convince other policymakers to cut rates meaningfully due to concerns about inflation. Kevin Warsh, a fellow economist and former Fed governor, is also in the running. He has been an outspoken critic of the central bank and has called for "regime change". However, his past reputation as a "hawk" on interest rates has led some to question whether he would support lower rates. Another contender is Christopher Waller, a current Fed governor who recently met with Trump. While Wall Street traders have looked favourably upon Waller's relative distance from the White House, analysts are divided about whether he would be a good fit for the role.
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