🏦 WHO IS THE NEXT FED CHAIR? The Race for the $20T Economy! 🇺🇸
As Jerome Powell’s term draws to a close in May 2026, the search for the most powerful person in finance is reaching a fever pitch. With a final decision expected as early as next week, here is the current shortlist of candidates that could redefine global monetary policy.
🏆 The Current Front-Runners
Kevin Warsh: The current favorite in prediction markets with roughly 60% odds. A former Fed Governor, Warsh is seen as a "credible independent" who could easily gain Senate approval.
Kevin Hassett: Once the top contender, his chances dropped to ~17% after President Trump publicly suggested he might keep him in his current role as Director of the National Economic Council.
Christopher Waller: A sitting Fed Governor known for his analytical rigor and impressive track record on inflation forecasting.
Rick Rieder: The Chief Investment Officer at BlackRock, bringing deep private-sector expertise in fixed-income markets to the table.
⚖️ What’s at Stake?
The next Chair will inherit a delicate balancing act:
Rate Policy: Trump has expressed a desire for significantly lower interest rates (targeting 1% or lower) to reduce national debt servicing costs.
Independence: A major point of friction remains whether the next Chair will "consult" with the White House on rate decisions, a practice Trump has signaled he wants to revive.
Market Stability: Treasury yields have already shown sensitivity to these rumors, ticking upward as the "Hassett favorite" narrative shifted toward Warsh.
💡 Trader’s Note
Watch the January FOMC meeting (Jan 27-28). Historical precedent suggests the next Chair could be announced around this window to ensure a smooth transition before May.
Who do you think will get the nod? 🏛️
🗳️ Warsh (Market Stability)
🗳️ Waller (Economic Continuity)
🗳️ Hassett (Trump Insider)