President Donald Trump is close to naming his pick for the next Federal Reserve chair, with Treasury Secretary Scott Bessent revealing that the field has been narrowed to four finalists from an initial pool of eleven candidates. Speaking at the World Economic Forum in Davos on Tuesday, Bessent indicated that an announcement could come as soon as next week.
The intensive selection process that began in September has produced a shortlist featuring Fed governors Chris Waller and Michelle Bowman, former Fed governor Kevin Warsh, NEC Director Kevin Hassett, and BlackRock head of fixed income Rick Rieder. Bessent confirmed that Trump has personally met with all four remaining candidates as the administration moves toward a final decision.
Prediction markets and political insiders have identified the so-called Two Kevins as the frontrunners. Kevin Hassett, currently serving as director of the National Economic Council, is viewed as the loyalist choice who has been a vocal critic of the current Fed leadership and advocates for aggressive interest rate cuts. Kevin Warsh, who served on the Fed board from 2006 to 2011, represents a more traditional, Wall Street-favored option with extensive central banking experience.
The nomination process has been complicated by an ongoing Department of Justice investigation into current Chair Jerome Powell, centered on renovations at the Federal Reserve headquarters. Powell has publicly characterized the probe as a pretext for political intimidation, while Senator Thom Tillis of North Carolina has threatened to block any nominee until the investigation is resolved.
Trump has made his expectations clear, issuing what amounts to a loyalty test requiring candidates to commit to lowering interest rates immediately upon taking office. Powell's term expires in May 2026, and he has stated he will fulfill his obligations until then despite the political pressure. The next Fed chair will face the challenging task of managing monetary policy while navigating an administration that has shown willingness to publicly pressure the traditionally independent central bank.
Market analysts are closely watching the selection, as the choice could significantly impact monetary policy direction and financial market stability in the coming years.