Trump hints at his top pick for Fed chair: 'Down to maybe one'

• Trump narrowed candidates from 11 to 'maybe one' in his mind, with finalists believed to include former Fed Governor Kevin Warsh, current Governor Christopher Waller, and BlackRock's Rick Rieder
• National Economic Council chief Kevin Hassett has likely been eliminated from contention as Trump prefers he remain at the NEC
• The selection follows unprecedented conflict with current Chair Powell, including verbal attacks, firing threats, and an actual attempt to remove Governor Lisa Cook that reached the Supreme Court

Summary: Trump Nears Decision on Federal Reserve Chair Replacement

President Donald Trump indicated Wednesday he has virtually decided on a replacement for Federal Reserve Chair Jerome Powell, narrowing his selection from an initial pool of 11 candidates down to "maybe one, in my mind." Speaking to CNBC at the World Economic Forum in Davos, Switzerland, Trump declined to name his preferred candidate.

Key Candidates:

The finalist pool reportedly includes:

• Former Fed Governor Kevin Warsh
• Current Fed Governor Christopher Waller
• National Economic Council chief Kevin Hassett
• BlackRock fixed income head Rick Rieder

Trump recently suggested Hassett should remain at the NEC, likely removing him from contention. The president praised Rieder, who interviewed last, as "very good."

Background Context:

The selection process began in September 2024 and follows a year of unprecedented tension between Trump and the Federal Reserve. While Trump criticized Powell during his first term (2017-21), he intensified pressure in 2025 through verbal attacks, termination threats, and an actual attempt to remove Governor Lisa Cook—a matter currently before the Supreme Court regarding presidential authority over the Fed.

Market Implications:

Powell's removal as chair appears nearly certain. A critical question remains whether Powell will serve out his remaining two-year term as a Fed governor, which would allow him continued influence over monetary policy and interest rates, potentially acting as a check against Trump's efforts to control Fed decisions. Trump expressed indifference about Powell's decision on this matter.

The leadership change could significantly impact monetary policy direction and Fed independence, key concerns for financial markets navigating interest rate decisions and economic policy.