‘Down to maybe one, in my mind’

President Donald Trump has revealed that he is in the final stages of selecting a replacement for Federal Reserve Chair Jerome Powell. During an interview with CNBC at the World Economic Forum in Davos, Switzerland, the president mentioned that the search, which began in September and initially included 11 candidates, has now been narrowed down to just a few contenders.

“I’d say we’re down to three, but we’re down to two. And I probably can tell you, we’re down to maybe one, in my mind,” Trump shared with CNBC’s Joe Kernen. While he did not disclose the name of the preferred candidate, he did acknowledge that the list included a mix of past and current Fed officials, economists, and Wall Street investors.

Among the finalists were Former Fed Governor Kevin Warsh, current Governor Christopher Waller, National Economic Council chief Kevin Hassett, and BlackRock fixed income head Rick Rieder. Trump specifically praised Rieder as “impressive” following his interview, but did not rule out other candidates.

In a recent development, Trump indicated that he would prefer Hassett to remain in his current position at the NEC, potentially removing him from consideration for the Fed chair role. Treasury Secretary Scott Bessent played a key role in the interview process, with Trump previously expressing support for him to take on the Fed job. However, Bessent has reportedly expressed a desire to stay in his current role.

The ongoing deliberations regarding the Fed chair position come amidst a turbulent period for the central bank, marked by intense scrutiny and criticism from the president. Trump has been vocal in his disapproval of Powell and the Fed’s policies, particularly in relation to monetary policy and interest rates.

As the decision on Powell’s replacement nears, questions have arisen regarding whether Powell will continue to serve as a governor for the remainder of his term. Trump appeared indifferent to Powell’s future plans, suggesting that Powell may not be content with remaining in his current role.

Trump also took the opportunity to criticize Powell for the costly renovation project at the Fed headquarters, which has exceeded $2.5 billion. The Justice Department has reportedly issued subpoenas related to the project, further adding to the controversy surrounding the central bank.

Overall, the selection of a new Fed chair is a critical decision that will have far-reaching implications for the economy and financial markets. As the process unfolds, it remains to be seen who will ultimately be chosen to lead the Federal Reserve in the coming years.