Trump says he will announce a replacement for Powell as Fed chair Friday morning

• The four finalists are former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, current Fed Governor Christopher Waller, and BlackRock's Rick Rieder
• Prediction markets on Kalshi now favor Warsh at 80% probability after he was reportedly at the White House on Thursday
• The selection process began in September with Treasury Secretary Scott Bessent screening candidates and reducing the field from 11 to the final four

SUMMARY

President Donald Trump announced Thursday that he will reveal his nominee for Federal Reserve Chair on Friday morning, concluding a five-month selection process that began in September. The announcement came during the premiere of "Melania," a film about the First Lady.

Key Details:

• Current Fed Chair Jerome Powell's term expires in May, though he has the option to serve two more years as a Fed governor
• Treasury Secretary Scott Bessent led the vetting process, narrowing an initial field of 11 candidates down to four finalists
• The final four candidates are believed to be:
• Kevin Warsh (former Fed Governor)
• Kevin Hassett (National Economic Council Director)
• Christopher Waller (current Fed Governor)
• Rick Rieder (BlackRock Chief Investment Officer for Fixed Income)

Market Implications:

Prediction markets have shown volatility in recent days regarding the likely nominee. Kevin Hassett initially led, followed by Warsh and then Rieder. However, as of Thursday evening, Kalshi prediction markets placed Warsh as the strong favorite with an 80% probability of selection. Reports indicated Warsh visited the White House on Thursday, though a White House spokesman dismissed speculation as premature.

The Fed Chair position is critical for monetary policy direction, interest rate decisions, and overall financial market stability. Powell has not confirmed whether he will remain as a governor after his chairmanship ends. The incoming chair will face significant responsibilities shaping U.S. monetary policy amid ongoing economic challenges.

Trump's final decision will be closely watched by financial markets, as different candidates may signal varying approaches to inflation management, interest rates, and regulatory oversight.