Trump selects four finalists for fed chair, but none is ideal

President Donald Trump said he has settled on the finalists for the role of Federal Reserve chair, but doubts inside the administration are growing: none of the four candidates fully matches his expectations. The president is pushing for rate cuts, yet he also needs someone with enough authority to persuade other Fed officials to support that policy.

The search is being overseen by Treasury Secretary Scott Bessent. He presented Trump with four finalists: former Fed governor Kevin Warsh; current governor Christopher Waller; Rick Rieder, BlackRock’s head of global fixed income; and White House adviser Kevin Hassett.

Trump publicly praised all four candidates, saying each could “do a great job.” But he also voiced concern that nominees might change course once confirmed—distancing themselves from his stance on rates and asserting their independence, which he called an “unfortunate form of disloyalty.”

The core dilemma is balancing loyalty with professional credibility. Hassett is the economist closest to Trump and a supporter of his policies, but appointing a personal adviser could raise questions about the Fed’s independence and unsettle the bond market.

Warsh, by contrast, has Fed experience and strong backing from the business community, but he has a reputation as a “hawk” and is linked to investor Stan Druckenmiller, who is skeptical about cutting rates.

Waller is Wall Street’s preferred choice. He supports rate cuts and consistently argues for prioritizing the labor market. Yet he has little personal connection to Trump, and a recent interview reportedly left a weak impression: the president pressed him on the Fed’s 50-basis-point cut in 2024, which Trump believes was politically motivated.

The most unconventional finalist is Rick Rieder. Though he has never worked in government, he manages more than $3 trillion in assets and has long advocated for low rates. His worldview could align with Trump’s goals, but his political background raises concerns: he has donated to Democratic campaigns and has no ties to the president’s team.

Despite speculation, there is no urgency. Jerome Powell’s term expires in May, leaving ample time to confirm a successor. Still, the uncertainty is adding pressure to markets awaiting signals about the Fed’s future policy—one of the most important variables for the U.S. economy in 2026.