Trump Administration Expands Fed Chair Candidate Pool as Powell’s Term Nears End

• Trump’s team is considering eleven candidates to replace Fed Chair Jerome Powell when his term ends in May 2026. 

• BlackRock’s Rick Rieder joined the list alongside two other new candidates who support rate cuts. 

• Current Fed Governor Chris Waller leads prediction markets with a 27.5% chance of selection.

The Trump administration has identified eleven potential candidates to replace Federal Reserve Chair Jerome Powell when his tenure concludes in May 2026. Three new names have joined the consideration list, expanding the pool of possible successors for the nation’s top monetary policy position.

BlackRock’s Chief Investment Officer for global fixed income, Rick Rieder, emerged as a notable addition to the candidate roster. Rieder previously advocated for interest rate cuts before the Federal Open Market Committee’s July meeting. His inclusion signals the administration’s interest in candidates who support more accommodative monetary policy.

The expanded list also includes Jefferies Chief Market Strategist David Zervos and former Federal Reserve Governor Larry Lindsey. These additions join previously identified candidates from within the Federal Reserve system and external financial sector leaders.

Current Fed Officials Lead Contention

Several sitting Federal Reserve officials remain strong contenders for the position. Fed Vice Chair for Supervision Michelle Bowman and Fed Governor Chris Waller continue as frontrunners, alongside Fed Vice Chair Philip Jefferson. Both Bowman and Waller supported rate cuts during the July FOMC meeting, aligning with the Trump administration’s monetary policy preferences.

The candidate pool extends beyond current Fed officials to include regional Federal Reserve presidents. Dallas Fed President Lorie Logan and former St. Louis Fed President James Bullard represent the regional bank perspective. Marc Summerlin rounds out the internal candidates being considered.

President Trump confirmed that Kevin Warsh and Kevin Hassett, collectively referred to as “Two Kevins,” remain under consideration. These external candidates bring diverse backgrounds from previous government service and private sector experience.

Treasury Secretary Scott Bessent will interview all candidates before creating a shortlist for President Trump’s final decision. This structured selection process aims to ensure thorough vetting of each potential nominee.

Market Predictions Favor Waller

Prediction markets currently favor Chris Waller for the Fed Chair position. Polymarket data shows a 27.5% probability that Trump will select Waller as Powell’s successor. This aligns with reports suggesting the administration appreciates Waller’s forward-looking approach to monetary policy decisions.

Source: Polymarket

Kevin Warsh and Kevin Hassett trail significantly in market predictions, with 10.8% and 10.7% chances, respectively. However, the highest probability scenario remains a delayed announcement, with 36% odds that no selection will occur before December 31.

The administration’s criticism of Powell’s current approach has intensified, with Trump recently suggesting potential legal action against the Fed Chair. This tension underscores the urgency behind identifying a suitable replacement who aligns with the administration’s economic vision.