Trump Says He Has Chosen the Right Fed Chair... Hassett Stresses Need for Independence

Donald Trump, President of the United States, has reiterated that he already has a specific candidate in mind for the next Chair of the Federal Reserve (Fed).

According to Bloomberg News on January 22 (local time), President Trump told reporters, "I will let you know soon," adding, "There is someone I believe is suitable for the position, but I will not reveal it at this time."

Donald Trump, President of the United States. Photo by Xinhua-Yonhap News

The list of candidates President Trump is considering for the next Fed Chair reportedly includes Kevin Hassett, Chairman of the White House National Economic Council (NEC); Christopher Waller, Fed Governor; Kevin Warsh, former Fed Governor; and Rick Rieder, Chief Investment Officer (CIO) of Fixed Income at BlackRock.

At one point, Chairman Hassett was seen as the most likely candidate. However, on January 16, President Trump told Chairman Hassett, "If you want to know the truth, I want you to remain in your current position as NEC Chairman." Citing sources, Bloomberg News reported that President Trump is personally somewhat dissatisfied with the decision he has made.

In an interview with CNBC the previous day, President Trump also stated, "In my mind, it may have narrowed down to one person." He further commented that CIO Rieder was "very impressive."

That day, Chairman Hassett said in an interview with CNBC that the new Fed Chair should be "an independent figure who respects the Fed's responsibilities."

He emphasized the need for someone like Alan Greenspan, who served as Fed Chair for a long time, stating, "Greenspan was able to allow the economy to run hot without causing inflation because he accurately identified the reasons for economic overheating." President Trump also mentioned in his CNBC interview the previous day that he wants someone like former Chair Greenspan.

Regarding CIO Rieder, whom President Trump mentioned, he said, "Rick and I have been friends for a long time," and praised him as "the best bond expert."

According to the online prediction market Polymarket, the probability of CIO Rieder being nominated as the next Fed Chair, which was only 3% just 10 days ago, has surged to 30%. In contrast, the probability for Chairman Hassett, which once reached 85%, has plummeted to 6%.