As the United States navigates a complex economic landscape marked by inflation concerns, interest rate adjustments, and geopolitical uncertainties, all eyes are on the Federal Reserve. Current Chair Jerome Powell, appointed by President Donald Trump in 2017 and renominated by President Joe Biden in 2021, has steered the central bank through unprecedented challenges, including the COVID-19 pandemic and subsequent inflationary pressures. However, Powell’s term as Chair expires in May 2026, and President Trump has made it clear he intends to appoint a new leader who aligns more closely with his economic vision of aggressive rate cuts and growth-oriented policies.
The selection process, overseen by Treasury Secretary Scott Bessent, has narrowed to a shortlist of five finalists. Bessent has indicated there’s a “very good chance” the decision could come before Christmas 2025, with one final interview pending. This timeline reflects the administration’s urgency to install a Fed Chair who can implement Trump’s agenda, potentially influencing monetary policy ahead of the term’s official start.
Drawing from recent reports, including a detailed analysis from Yahoo Finance outlining the five finalists, below is a closer look at each candidate. Their backgrounds span Wall Street, academia, and prior Fed experience, with varying degrees of loyalty to Trump and views on interest rates. As of late November 2025, Kevin Hassett has emerged as the frontrunner, according to multiple sources close to the administration.
Kevin Hassett: The Leading Candidate and Trump Loyalist
Kevin Hassett, currently serving as Director of the National Economic Council (NEC), is widely regarded as the top contender. A seasoned economist, Hassett advised Republican presidential nominees like George W. Bush, John McCain, and Mitt Romney before joining Trump’s first administration as Chair of the Council of Economic Advisers. He returned during the COVID-19 crisis to help shape economic responses.
Hassett’s appeal lies in his alignment with Trump’s push for lower interest rates. He has publicly criticized central bankers for allowing inflation to spiral and stated he would cut rates if appointed. Co-author of the 1999 book “Dow 36,000,” Hassett is optimistic about stock market growth under pro-business policies. Prediction markets like Kalshi and Polymarket give him a double-digit lead as of November 25, 2025. Pros: Deep White House experience and loyalty to Trump. Cons: Critics argue his partisan background could undermine the Fed’s independence.
Christopher Waller: The Insider with Fed Expertise
Christopher Waller, a current Federal Reserve Governor, represents a more conventional choice with hands-on central banking experience. Nominated by Trump in 2019 and narrowly confirmed by the Senate in 2020 (48-47 vote), Waller has a long history as a regional Fed official. In July 2024, he and Governor Michelle Bowman dissented against holding rates steady—the first dual dissent in over 30 years—advocating for cuts.
Waller’s strengths include his familiarity with the Fed’s operations and a track record of supporting rate reductions in line with Trump’s preferences. He recently met positively with Bessent, boosting his prospects. Pros: Institutional knowledge and less political baggage. Cons: Some view him as too entrenched in the current Fed establishment, which Trump has criticized.
Kevin Warsh: The Crisis Veteran and Fed Critic
Former Federal Reserve Governor Kevin Warsh brings a blend of Wall Street savvy and policy experience. Starting his career at Morgan Stanley in mergers and acquisitions, Warsh served as an economic advisor in the George W. Bush White House before his 2006 Fed nomination. He played a key role in the 2008 financial crisis response and acted as the Fed’s liaison to Wall Street until 2011.
From outside the Fed, Warsh has echoed Trump’s criticisms of Powell, calling for a “regime change” at the central bank. Trump named him as one of the “top three” contenders in September 2025, alongside Hassett and Waller. Pros: Proven crisis management and reformist stance. Cons: His past resignation from the Fed might raise questions about commitment.
Michelle Bowman: The Dissenting Voice with Regulatory Roots
Michelle Bowman, another sitting Fed Governor, was appointed by Trump in 2018 and reappointed in 2020. Confirmed as Vice Chair of Supervision in June 2025, her career includes interning for Senator Bob Dole, roles at FEMA and Homeland Security under Bush, and serving as Kansas’s top banking official after working at a community bank.
Bowman made history in September 2024 as the first Fed governor in nearly two decades to vote against an interest rate decision, and she joined Waller in the July dissent for rate cuts. Pros: Experience in banking regulation and a willingness to challenge consensus. Cons: Limited high-level monetary policy exposure compared to others.
Rick Rieder: The Wall Street Heavyweight
Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, manages approximately $2.4 trillion in assets, making him a prominent figure from the private sector. His career spans decades on Wall Street, including time at Lehman Brothers, and he served on the Fed’s Investment Advisory Committee on Financial Markets.
As a “big Wall Street name,” Rieder offers market expertise that could appeal to Trump’s business-oriented approach. Pros: Deep financial markets insight and asset management prowess. Cons: Lack of direct government or Fed experience might be seen as a drawback in navigating Washington politics.
Implications for the Economy and Markets
The choice of Powell’s successor will have profound effects on interest rates, inflation control, and economic growth. Trump’s preference for a more pliable Fed could lead to faster rate cuts, boosting markets but risking higher inflation. Notably, several early contenders—like Dallas Fed President Lorie Logan, former St. Louis Fed President James Bullard, and economist Larry Lindsey—have dropped out or been eliminated.
As the decision nears, investors and policymakers alike await Trump’s announcement, which could reshape the Federal Reserve’s direction for years to come. With Hassett leading the pack, the outcome may favor a loyalist ready to align monetary policy with the administration’s goals.