Trump To Name Fed Chief Pick Friday; Here's The New Front-Runner To Replace Jerome Powell

• Kevin Warsh, a former Fed Governor, jumped to 86% odds on Polymarket prediction markets after a Thursday White House visit, surpassing earlier front-runner Kevin Hassett
• The nomination comes amid controversy as the Justice Department recently began a criminal probe of Powell related to Federal Reserve building renovations, widely seen as political and potentially delaying Senate confirmation
• Trump has consistently pushed for sharply lower interest rates despite three Fed rate cuts in late 2025, and is separately attempting to fire Fed Governor Lisa Cook in a case now before the Supreme Court

Summary: Trump to Announce Fed Chief Nominee Friday

President Donald Trump confirmed Thursday evening he will announce his Federal Reserve chair nominee Friday morning to replace Jerome Powell, whose term ends May 15. Former Fed Governor Kevin Warsh has emerged as the leading candidate, with prediction market Polymarket giving him an 86% probability. Warsh was reportedly at the White House on Thursday.

Key Candidates:

The selection was narrowed to four finalists:

• Kevin Warsh (former Fed Governor) - current front-runner
• Christopher Waller (current Fed Governor)
• Kevin Hassett (Trump's National Economic Council Director)
• Rick Rieder (BlackRock Chief Investment Officer for Fixed Income)

Hassett was previously viewed as the leading candidate before Warsh's recent emergence.

Market Implications:

Trump has consistently advocated for significantly lower interest rates, even following three Fed rate cuts in late 2025. The new Fed chair selection could signal a shift toward more accommodative monetary policy.

Political Complications:

Several factors may complicate the transition:

• An unresolved question remains whether Powell will continue as Fed governor through early 2028, which would limit Trump's ability to reshape the Federal Reserve
• The Justice Department has initiated a criminal investigation into Powell regarding Federal Reserve building renovations, widely perceived as politically motivated
• The Senate may delay confirmation of Trump's nominee while the Powell investigation continues
• Trump is attempting to remove Fed Governor Lisa Cook, with the Supreme Court recently hearing arguments in the case

The announcement ends months of speculation about Fed leadership during a critical period for monetary policy.