Trump’s Fed Power Play: Top Contenders Ignite Political Firestorm

Paul Riverbank, 12/1/2025Trump’s bold Fed pick nears: political intrigue, economic stakes, and five heavyweight contenders emerge.

There’s plenty of theatrical energy swirling around this selection—far more than usual for an appointment that, at its best, is supposed to project technocratic stability. Yet, the drama isn’t just for show. Trump, who’s had several very public disputes with Powell over the past years, sees this as a chance to install a Fed chief more closely aligned with his own economic instincts.

Kevin Hassett appears to be at the front of the pack. His résumé reads like a patchwork quilt of recent Republican administrations—advising presidents from George W. Bush to John McCain and Mitt Romney, rejoining the Trump team during the early, chaotic months of the COVID crisis, and even leading the Council of Economic Advisers. Hassett’s approach to monetary policy is anything but timid: he’s on record saying he’d cut rates now, citing recent economic data as ample justification.

It’s a stance that dovetails with Trump’s long-standing complaints about what he calls the Fed’s “overly cautious” posture. When word got out that Hassett was in the lead, markets responded almost instantly—Treasury yields softened in anticipation of easier money, a sign that investors see the writing on the wall. Hassett, notably, avoids grandstanding and says, “I want to serve my country and serve my president. But you know, we’ll see how it goes. There are a lot of great candidates.” Subdued, but unmistakably ambitious.

Hassett isn’t the only name on the president’s shortlist. Christopher Waller, already seated as a Fed governor, brings an insider’s understanding of how the institution runs. His path to the Board wasn’t smooth—his confirmation scraped through with the narrowest margin for a Fed official in decades. That hasn’t stopped him from establishing a reputation for diligence and discretion. Asked about his prospects, he managed only to say he’d had a “great meeting.” The kind of answer that reveals nothing but suggests everything.

Kevin Warsh is familiar to long-timers in financial circles—he was at the center of the Fed’s response to the 2008 crisis. Wall Street experience, Capitol Hill savvy, and a reputation for deft, sometimes forceful, crisis management make him a credible candidate. Oddly enough, Trump almost tapped Warsh in 2017 before settling on Powell, a reminder that history sometimes circles back.

Michelle Bowman’s candidacy stands out for different reasons. As the Fed’s vice chair for supervision, she knows the regulatory playbook inside out, with a focus on community banking that many of her peers lack. She’s also not afraid to buck consensus, casting dissenting votes—an uncommon move in that institution’s typically unified front. For anyone worried about the Fed becoming too cozy with the White House, Bowman’s independent streak may offer some reassurance.

Rounding out the field is Rick Rieder, a perennial name on lists of financial heavyweights. As BlackRock’s chief investment officer for global fixed income, he’s steered portfolios worth trillions through volatile times. While he hasn’t sat behind the Fed’s guarded doors, Rieder has been a trusted source of advice for current and former central bank officials. He’s accustomed to risk, but the leap from managing funds to setting interest rates on a national scale is significant.

The search, for all its high stakes, remains a closely guarded affair. Trump hasn’t hidden his preferences—he’s repeatedly described Powell as “grossly incompetent,” and recalls advice not to fire him as one of the few calls he heeded during that turmoil-laden first term. Now, surrounded by a new circle of allies and with Republicans controlling the Senate, Trump sounds almost at ease about the process: “I think I already know my choice,” he told reporters last week.

The vetting is being coordinated by Treasury Secretary Scott Bessent, himself a figure with Wall Street and academic credentials. Bessent insists this is a merit-based process, though few in Washington are naïve enough to think loyalty isn’t at least part of the calculus. There’s a sense among political observers that, in this case, the resumes are formidable—but perceptions of ideological sympathy could sway the final verdict.

Timing isn’t on the candidates’ side. The final interviews are wrapping up fast, and Trump, ever the showman, hopes to make the announcement before Christmas. Meanwhile, the Federal Open Market Committee—the Fed’s powerful rate-setting arm—is split over the coming year’s course. Inflation remains stubborn. The job market offers more questions than answers. Interest rates stayed steady through most of 2025, only easing slightly as the year closed. Whoever takes charge next will inherit a difficult mix of cross-currents.

One more wrinkle: the possibility that if Powell steps down from the entire Fed Board, Trump could appoint yet another official. That would cement a lasting conservative stamp on U.S. monetary policy, likely outlasting his own administration should he reclaim the Oval Office. For now, all eyes are locked on the West Wing. In a city accustomed to the choreography of power, it’s the unpredictable moves that keep everyone guessing.

Whatever the outcome, this coming decision reaches far beyond the Beltway. The new Fed chair’s outlook will touch everything from home mortgages to the value of the dollar, from middle-class employment to international debt markets. A few names remain. The stakes are vast, the clock is running, and the economic fate of millions hangs in the balance.

The White House is buzzing. It’s one of those periods in American politics when every rumor, every off-the-record comment, sends tremors through both Washington and Wall Street. The reason? President Donald Trump, resurgent and never shy about upending precedent, is nearing a decision on who will lead the Federal Reserve when Jerome Powell finishes his term in May 2026.There’s plenty of theatrical energy swirling around this selection—far more than usual for an appointment that, at its best, is supposed to project technocratic stability. Yet, the drama isn’t just for show. Trump, who’s had several very public disputes with Powell over the past years, sees this as a chance to install a Fed chief more closely aligned with his own economic instincts.Kevin Hassett appears to be at the front of the pack. His résumé reads like a patchwork quilt of recent Republican administrations—advising presidents from George W. Bush to John McCain and Mitt Romney, rejoining the Trump team during the early, chaotic months of the COVID crisis, and even leading the Council of Economic Advisers. Hassett’s approach to monetary policy is anything but timid: he’s on record saying he’d cut rates now, citing recent economic data as ample justification.It’s a stance that dovetails with Trump’s long-standing complaints about what he calls the Fed’s “overly cautious” posture. When word got out that Hassett was in the lead, markets responded almost instantly—Treasury yields softened in anticipation of easier money, a sign that investors see the writing on the wall. Hassett, notably, avoids grandstanding and says, “I want to serve my country and serve my president. But you know, we’ll see how it goes. There are a lot of great candidates.” Subdued, but unmistakably ambitious.Hassett isn’t the only name on the president’s shortlist. Christopher Waller, already seated as a Fed governor, brings an insider’s understanding of how the institution runs. His path to the Board wasn’t smooth—his confirmation scraped through with the narrowest margin for a Fed official in decades. That hasn’t stopped him from establishing a reputation for diligence and discretion. Asked about his prospects, he managed only to say he’d had a “great meeting.” The kind of answer that reveals nothing but suggests everything.Kevin Warsh is familiar to long-timers in financial circles—he was at the center of the Fed’s response to the 2008 crisis. Wall Street experience, Capitol Hill savvy, and a reputation for deft, sometimes forceful, crisis management make him a credible candidate. Oddly enough, Trump almost tapped Warsh in 2017 before settling on Powell, a reminder that history sometimes circles back.Michelle Bowman’s candidacy stands out for different reasons. As the Fed’s vice chair for supervision, she knows the regulatory playbook inside out, with a focus on community banking that many of her peers lack. She’s also not afraid to buck consensus, casting dissenting votes—an uncommon move in that institution’s typically unified front. For anyone worried about the Fed becoming too cozy with the White House, Bowman’s independent streak may offer some reassurance.Rounding out the field is Rick Rieder, a perennial name on lists of financial heavyweights. As BlackRock’s chief investment officer for global fixed income, he’s steered portfolios worth trillions through volatile times. While he hasn’t sat behind the Fed’s guarded doors, Rieder has been a trusted source of advice for current and former central bank officials. He’s accustomed to risk, but the leap from managing funds to setting interest rates on a national scale is significant.The search, for all its high stakes, remains a closely guarded affair. Trump hasn’t hidden his preferences—he’s repeatedly described Powell as “grossly incompetent,” and recalls advice not to fire him as one of the few calls he heeded during that turmoil-laden first term. Now, surrounded by a new circle of allies and with Republicans controlling the Senate, Trump sounds almost at ease about the process: “I think I already know my choice,” he told reporters last week.The vetting is being coordinated by Treasury Secretary Scott Bessent, himself a figure with Wall Street and academic credentials. Bessent insists this is a merit-based process, though few in Washington are naïve enough to think loyalty isn’t at least part of the calculus. There’s a sense among political observers that, in this case, the resumes are formidable—but perceptions of ideological sympathy could sway the final verdict.Timing isn’t on the candidates’ side. The final interviews are wrapping up fast, and Trump, ever the showman, hopes to make the announcement before Christmas. Meanwhile, the Federal Open Market Committee—the Fed’s powerful rate-setting arm—is split over the coming year’s course. Inflation remains stubborn. The job market offers more questions than answers. Interest rates stayed steady through most of 2025, only easing slightly as the year closed. Whoever takes charge next will inherit a difficult mix of cross-currents.One more wrinkle: the possibility that if Powell steps down from the entire Fed Board, Trump could appoint yet another official. That would cement a lasting conservative stamp on U.S. monetary policy, likely outlasting his own administration should he reclaim the Oval Office. For now, all eyes are locked on the West Wing. In a city accustomed to the choreography of power, it’s the unpredictable moves that keep everyone guessing.Whatever the outcome, this coming decision reaches far beyond the Beltway. The new Fed chair’s outlook will touch everything from home mortgages to the value of the dollar, from middle-class employment to international debt markets. A few names remain. The stakes are vast, the clock is running, and the economic fate of millions hangs in the balance.