Besant Names Waller, Bowman, Hassett Among Candidates
Online Betting Platforms Favor Hassett as Leading Contender
The list of candidates to succeed Jerome Powell as Chairman of the U.S. Federal Reserve (Fed) has been narrowed down to five individuals.
Next candidates for the Chairman of the U.S. Federal Reserve (Fed). Kevin Hassett, Chairman of the White House National Economic Council (NEC), Christopher Waller, Fed Governor, Kevin Warsh, former Fed Governor, Rick Rieder, Chief Investment Officer (CIO) of BlackRock, Michelle Bowman, Fed Vice Chair (from left). Photo by Axios.
On October 27 (local time), U.S. Treasury Secretary Scott Besant told reporters aboard Air Force One, the presidential plane traveling from Malaysia to Japan, about the shortlist.
Secretary Besant identified the five candidates for the next Fed Chair as Christopher Waller, Fed Governor; Michelle Bowman, Fed Vice Chair; Kevin Hassett, Chairman of the White House National Economic Council (NEC); Kevin Warsh, former Fed Governor; and Rick Rieder, Chief Investment Officer (CIO) of BlackRock. Initially, Secretary Besant himself was mentioned as a potential candidate for the next Fed Chair, but after expressing his intention to continue serving as Treasury Secretary, he has been directly leading the vetting process for candidates. Former Governor Warsh previously competed with Secretary Besant for the position of Treasury Secretary in the early days of the Trump administration's second term.
Secretary Besant stated that another round of interviews would be conducted before submitting the final shortlist of candidates to President Donald Trump after the Thanksgiving holiday at the end of November.
President Trump, who was present at the same event, also announced that he would nominate the next Fed Chair before the end of the year. He further criticized Chairman Powell, saying, "There is someone who is not at all smart right now," referring again to Powell's lack of responsiveness to his calls for interest rate cuts.
Traditionally, the White House nominates a successor three to four months before the incumbent Chair's term expires. If the new Chair is announced by the end of the year, it would mean an early nomination by several months. This move is interpreted as an attempt to exert influence over monetary policy.
Currently, Chairman Powell's term runs until May 2026. Even after his term as Chair ends, he can remain a Fed Governor until 2028. However, it has not yet been disclosed whether he will continue as a Governor or resign after his term as Chair concludes.
Meanwhile, the online media outlet Axios, citing the online prediction platform Polymarket, reported that as of 11 a.m. Eastern Time on this day, Kevin Hassett had the highest probability of being nominated as the next Fed Chair among the five candidates, with a 36% chance. He was followed by Governor Waller (23%), former Governor Warsh (16%), CIO Rieder (9%), and Vice Chair Bowman (3%).
The current Fed Board of Governors consists of seven members, three of whom-Governor Waller, Vice Chair Bowman, and Governor Stephen Myron-were nominated by President Trump. Previously, after former Fed Governor Adriana Kugler abruptly resigned, President Trump nominated his "economic advisor," Stephen Myron, Chairman of the White House Council of Economic Advisers, as her successor. He also attempted to exert influence over monetary policy by dismissing Fed Governor Lisa Cook, but the court ruled that Cook could continue serving as Governor until a final decision is made regarding the legality of her dismissal.
The Fed's monetary policy decisions are made by a total of 12 voting members: the seven members of the Board of Governors and the five presidents of the Federal Reserve Banks.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
