Trump says he will announce a replacement for Powell as Fed chair Friday morning

President Donald Trump announced on Thursday that he will be revealing his choice for the new Federal Reserve chair on Friday. This decision comes after a lengthy process that began last summer to find a successor to current Chair Jerome Powell.

During the premiere of the film “Melania,” which focuses on first lady Melania Trump, the president shared that the selection process is coming to a close. “I’ll be announcing the Fed chair tomorrow morning,” Trump stated. When asked if he had made a final decision, he replied, “I do, I better, otherwise I have to go to work very quickly.”

The search for Powell’s replacement commenced in September with an initial pool of 11 candidates, including former and current Fed officials, economists, and Wall Street professionals. Treasury Secretary Scott Bessent oversaw the screening process, ultimately narrowing down the list to four individuals. The final contenders are believed to be former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, current Fed Governor Christopher Waller, and BlackRock chief investment officer for fixed income Rick Rieder.

Various prediction markets have been speculating on the frontrunner for the position. Hassett held the lead for a period of time, followed by Warsh, and most recently, Rieder. However, recent developments have shifted the odds in favor of Warsh, with Kalshi now indicating an 80% likelihood of his selection.

Trump hinted that the chosen candidate is someone who could have been considered for the role a few years ago. Warsh was previously in contention in 2017 when Trump ultimately nominated Powell. Reports surfaced that Warsh visited the White House on Thursday, though an official quickly dismissed any speculation.

In response to inquiries about his future at the Fed, Powell refrained from confirming whether he intends to stay on after his term as chair concludes in May. He has the option to fulfill the remaining two years of his governor’s term.

The upcoming announcement of the Federal Reserve chair nomination is highly anticipated, with stakeholders eagerly awaiting Trump’s decision. As the process nears its conclusion, all eyes are on the White House for the official reveal.