Trump to start final Fed chair interviews beginning with Kevin Warsh

President Donald Trump is gearing up to conduct final interviews with candidates for the Federal Reserve chair position this week, marking a significant step in the formal selection process that had hit a roadblock earlier this summer.

In a statement to reporters aboard Air Force One on Tuesday night, Trump mentioned that he has a clear idea of who he wants for the role. The interviews, which will be conducted by Trump and Treasury Secretary Scott Bessent, are set to kick off with former Fed Governor Kevin Warsh on Wednesday. Additionally, Kevin Hassett, the director of the National Economic Council, is also slated to be interviewed at a later date. This move comes after a setback last week when candidate interviews were unexpectedly canceled.

Trump had previously hinted at his preferred candidate to succeed current Chair Jerome Powell, with prediction markets heavily favoring Hassett. However, concerns from fixed income investors about Hassett potentially prioritizing Trump’s interests and keeping rates artificially low have sparked speculation about the final selection.

The upcoming interviews with the four shortlisted candidates, including current Governors Christopher Waller and Michelle Bowman, as well as BlackRock fixed income chief Rick Rieder, will play a crucial role in determining the next Fed chair. Powell, whose term ends in May, is expected to announce a third rate cut for the year on Wednesday but is likely to adopt a cautious stance on future rate adjustments during his post-meeting news conference. The Fed’s forecast from September projected only one rate cut in the upcoming year.

Trump, who has been vocal about his desire for a more accommodative monetary policy, may be further challenged if Powell adopts a hawkish tone during the press conference. In a recent Politico interview, Trump mentioned that he plans to evaluate candidates based on their willingness to implement further rate cuts.

Warsh, one of the candidates being interviewed, declined to provide a comment to CNBC. As the selection process reaches its final stages, the financial markets remain on edge, awaiting the announcement of the new Federal Reserve chair.