Trump to announce Fed chair pick today as Warsh emerges as front-runner

President Donald Trump said he plans to announce his choice to replace Federal Reserve Chair Jerome Powell on Friday, with speculation intensifying that former Federal Reserve Governor Kevin Warsh is the leading contender, according to Reuters.

Bloomberg News reported that the White House is preparing to nominate Warsh, citing people familiar with the matter. Warsh met Trump at the White House on Thursday, a source familiar with the matter told Reuters. Another source briefed on the discussion said Warsh made a strong impression, though the decision had not yet been finalised.

Trump has been pressing the Federal Reserve to cut interest rates more aggressively and has escalated pressure on Powell and other policymakers in recent months. That campaign has raised the possibility that Powell could remain at the central bank beyond the end of his leadership term in May in an effort to protect the institution from political interference. Powell’s separate term as a member of the Board of Governors runs through 2028.


The Fed cut rates three times in 2025 but left its benchmark interest rate unchanged this week in a range of 3.50% to 3.75% after a two-day policy meeting. Trump has argued that rates should be significantly lower, despite recent economic data showing the U.S. economy grew at a 4.4% annualised pace in the third quarter, according to Commerce Department figures.

Trump’s search for Powell’s successor has unfolded alongside a broader effort to exert influence over the central bank, whose political independence is widely seen as critical to controlling inflation. In recent months, Trump has sought to remove a Fed governor in a case now before the Supreme Court. At the same time, the Justice Department has opened a criminal investigation into Powell over cost overruns tied to renovations at the Fed’s Washington headquarters.

All candidates under consideration reportedly support lower interest rates, a key criterion set by Trump for the role.

Warsh surged to the top of prediction markets on Thursday, with Polymarket and Kalshi both placing his chances above 80%, according to market data. Warsh has advocated for major changes at the Fed, including a smaller balance sheet, and nearly secured the role in 2018 before Trump ultimately selected Powell.

Rick Rieder, BlackRock’s chief investment officer for global fixed income, had recently been viewed as a leading contender, though he has no prior government or Federal Reserve experience. Federal Reserve Governor Christopher Waller, who dissented from this week’s decision to hold rates steady, is also among the candidates, having argued that tariffs would not fuel inflation and that the economy needs additional support.

White House economic adviser Kevin Hassett was previously seen as a front-runner but is now considered a less likely choice after Trump signalled a preference for keeping him in his current role. Hassett has been a prominent supporter of several of Trump’s economic policies, including higher tariffs and stricter immigration measures.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)