Trump signals he has a favorite for Fed chair: 'Down to maybe one, in my mind'

• Trump declined to name his preferred candidate but indicated the search that began in September has narrowed from 11 candidates to approximately one finalist
• National Economic Council chief Kevin Hassett has likely been eliminated from contention as Trump prefers he remain in his current role
• Powell's removal as Fed chair appears nearly certain, though he could potentially stay on as a governor for another two years, maintaining influence over monetary policy decisions

Trump Narrows Fed Chair Replacement Search

Key Developments:

President Donald Trump announced he has nearly finalized his selection to replace Federal Reserve Chair Jerome Powell, narrowing his search from 11 candidates to "maybe one, in my mind." Speaking at the World Economic Forum in Davos, Switzerland, Trump declined to name his preferred candidate but indicated the decision is imminent.

Leading Candidates:

The finalists reportedly include:

• Former Fed Governor Kevin Warsh
• Current Fed Governor Christopher Waller
• National Economic Council chief Kevin Hassett (likely eliminated after Trump indicated he prefers Hassett remain at the NEC)
• BlackRock fixed income head Rick Rieder, whom Trump praised as "very good"

Political Context:

The selection process follows unprecedented turmoil at the central bank. While Trump criticized Powell during his first term (2017-2021), tensions escalated significantly in 2025 with increased verbal attacks, threats to fire Powell, and an attempted removal of Governor Lisa Cook. The Supreme Court held hearings on presidential authority over the Fed earlier Wednesday.

Market Implications:

Powell's removal as chair appears certain, though he could potentially serve out his remaining two-year term as governor. If he stays on, Powell would retain influence over monetary policy and interest rates, potentially limiting Trump's ability to exert control over Fed decisions. Trump expressed indifference regarding Powell's decision to remain as governor.

The next chair appointment will have significant implications for monetary policy direction, Fed independence, and market confidence in the central bank's autonomy.