Trump's Fed Pick Looms Amid Rate Cut Demands
Liam PetersonTrump names Fed Chair Friday, a choice expected to favor lower rates, stoking central bank independence debates.
President Donald Trump is set to announce his nominee for Federal Reserve Chair on Friday morning, bringing an end to months of speculation about the future leadership of the world's most influential central bank.
When asked about the timing of his decision at a Washington event on Thursday evening, Trump confirmed the announcement would be made "tomorrow morning." This timeline is an acceleration from just hours earlier, when the president had suggested the pick would be revealed next week.
The Shortlist for the Top Job
The selection process, overseen by Treasury Secretary Scott Bessent, has reportedly narrowed the field to four potential candidates:
• Kevin Hassett, Director of the National Economic Council
• Christopher Waller, a Federal Reserve governor
• Kevin Warsh, a former Fed governor
• Rick Rieder, an executive at BlackRock Inc.
Without revealing a name, Trump hinted that his choice would not be a surprise to the financial community. "A lot of people think this is somebody that could've been there a few years ago," he commented.
A Mandate for Lower Interest Rates
The president has been transparent about his criteria, seeking a Fed leader who shares his desire to cut interest rates more aggressively. Trump's long-running public pressure campaign on current Chair Jerome Powell has focused on his belief that borrowing costs are too high.
"We're paying far too much interest in the Fed," Trump stated on Thursday. "We should have the lowest interest rate anywhere in the world. They should be two points and even three points lower."
This statement followed the Federal Reserve's decision on Wednesday to leave its benchmark rate unchanged, a move that came after three consecutive rate reductions in the final months of 2025.
Political Hurdles and Questions of Independence
Trump's nominee could face a difficult confirmation process in the U.S. Senate. Republican Senator Thom Tillis, a key member of the Banking Committee, has pledged to block any of the president's Fed nominees pending the resolution of a Justice Department investigation into the central bank's headquarters renovation.
The probe, which also involves Chair Powell's congressional testimony, has amplified existing concerns about political threats to the Federal Reserve's independence. The president's announcement will mark a new phase in his extended effort to influence the central bank's monetary policy.
