President Donald Trump said in an interview to CNBC that his search for a new Fed has come down to one.
- President Donald Trump has been interviewing candidates for the last few months to replace current Fed Chair Jerome Powell.
- Expectations for the announcement of a new Fed chair have been high and Trump’s administration has indicated that the President will declare the name after he returns from Davos.
- Odds of ex-Fed official Kevin Warsh have soared recently ahead of White House National Economic Council Director Kevin Hassett after President Donald Trump indicated that he would like to keep Hassett in his current post.
Donald Trump on Wednesday indicated that his search for a new Federal Reserve chair is nearly over.
“I’d say we’re down to three, but we’re down to two. And I probably can tell you, we’re down to maybe one, in my mind,” he said in an interview to CNBC.
The finalists had been widely believed to be Former Fed Governor Kevin Warsh, current Governor Christopher Waller, National Economic Council chief Kevin Hassett, and BlackRock fixed income head Rick Rieder. Trump in the interview said Rieder, the last to interview, is “impressive” and praised all the candidates.
Donald Trump has been interviewing candidates to replace current Fed chair Jerome Powell for the last few months. Warsh and Hassett are widely touted to be the two front-runners to take the job.
Trump has repeatedly said that the next Fed chair has to immediately cut interest rates, adding that whoever does not cut rates will not be considered for the job.
Next Fed Chair
Expectations for the announcement of a new Fed chair have been high and Trump’s administration has indicated that the President will declare the name after he returns from Davos.
“I'd expected that we would have a decision either before he leaves for Davos or when he returns,” U.S. Treasury Secretary Scott Bessent said.
“A candidate who President Trump nominates will be confirmed quickly. I think it will be someone who is substantial, who cares about the integrity of the Fed, but cares about the dual mandate and who markets will respect,” he added.
Odds of Warsh being named as the next Fed chair recently soared ahead of Hassett after President Donald Trump indicated that he would prefer to keep Hassett as the country’s top economic advisor.
Market Reaction
U.S. equities closed in green on Wednesday. The SPDR S&P 500 ETF (SPY) edged higher by 0.2% in extended hours of trading, the SPDR Dow Jones Industrial Average ETF (DIA) was up 0.1%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) rose 0.32% during extended hours of trading.
Retail sentiment around SPY on Stocktwits remained in the ‘bearish’ territory.
