With Chair Jerome Powell’s term approaching its end, the White House has narrowed its search to Christopher Waller, Kevin Hassett, and Kevin Warsh. The choice will shape the Fed’s posture on rates, financial stability and communications at a delicate moment for the economy.
The field
- Christopher Waller — Current Fed governor, former St. Louis Fed research chief. Seen as an institutionalist with a pragmatic streak.
- Kevin Hassett — Former CEA chair and current NEC director; broadly supportive of the administration’s growth‑first agenda.
- Kevin Warsh — Former Fed governor; advocates structural changes to the Fed’s toolkit and balance sheet policy.
Why it matters
Markets are gauging whether the next chair would move more aggressively on rate cuts amid softening labor data, or emphasize caution until inflation cools further.
Signals to watch
- Public remarks on inflation persistence, neutral rate estimates, and the role of tariffs in price dynamics.
- Views on the balance sheet and liquidity facilities after a turbulent 2024–25 cycle.
- Approach to Fed‑Treasury coordination if growth weakens.
Source reporting: Reuters and Bloomberg reporting on the shortlist and policy context.