Odds of Trump tapping David Zervos for Fed chief jump on Kalshi

Jefferies Chief Market Strategist David Zervos is gaining traction as a potential candidate for the next Federal Reserve chair, according to prediction market Kalshi. With current Fed Chair Jerome Powell’s term set to expire next year, the Trump administration is considering several candidates for the position.

Sources have revealed that President Donald Trump is looking at 11 candidates for the Fed chair role, including Zervos, former Fed Governor Larry Lindsey, and Rick Rieder, who is the chief investment officer for global fixed income at BlackRock. Users on Kalshi have increased their bets on Zervos to 15% following this news.

Zervos’ chances of being nominated by Trump are now tied with former Fed Governor Kevin Warsh, who was previously considered a front-runner for the position. At one point, Zervos even surpassed Warsh with odds of 17% compared to Warsh’s 15%. Fed Governor Chris Waller currently holds the top spot on the platform with odds at 31%, while National Economic Council Director Kevin Hassett’s odds are at 20%.

Hassett and Warsh have seen a surge in their odds on prediction markets after Trump praised “the Kevins” on CNBC, highlighting their support for lower interest rates. Powell, who has faced criticism from Trump for not cutting rates, is set to conclude his term in May 2026.

In a recent Fed decision in July, Waller and Fed Governor Michelle Bowman publicly dissented with the central bank’s decision to maintain interest rates. Waller, who was appointed to the Fed by Trump in 2020, criticized the wait-and-see approach as “overly cautious.”

According to Bloomberg News, Trump’s advisors favor Waller for his willingness to adjust monetary policy based on forecasting rather than solely relying on current data. While Waller has met with Trump’s team regarding the Fed chair role, he has yet to meet with the president directly.

The race for the next Federal Reserve chair is heating up, with Zervos emerging as a contender alongside other prominent candidates. As the speculation continues, all eyes are on Trump’s eventual decision and its implications for the future of the Federal Reserve.