A Sense of Deja Vu: A New Federal Reserve Chair Showdown Looms
There are few decisions a President makes that can ripple through the global economy quite like the selection of a Federal Reserve Chair. Nearly a decade ago, the political and financial worlds were focused on one question: Who would President Donald Trump choose to steer the world’s most powerful central bank? Reports at the time indicated the President was kicking off the final round of interviews, a process that felt secretive and high-stakes.
That highly anticipated selection ultimately led to the nomination of current Fed Chair Jerome Powell, who officially assumed his post in February 2018. Powell, a lawyer and former investment banker, was seen at the time as a moderate Republican who would bring a sense of continuity to the central bank’s policy, succeeding Janet Yellen. The final candidates reportedly came down to Powell, Yellen, and Stanford economist John Taylor.
Fast forward to today, and the financial world is witnessing a dramatic replay of that pivotal moment. With Chairman Powell’s term set to expire in May 2026, President Trump is once again in the process of vetting potential replacements, and this time the stakes feel even higher and the rhetoric more intense.
The latest headlines confirm that the current administration has been conducting final-round interviews for the crucial leadership position. This time, the search has been publicly contentious, with the President openly criticizing the current Chairman, whom he has blasted as “grossly incompetent.” Such unprecedented friction has set the stage for what many anticipate will be a major directional shift for US monetary policy.
The shortlist for the post reportedly includes several prominent figures. Among the leading candidates are former Fed Governor Kevin Warsh, known for his more hawkish views, and current Federal Reserve Governor Christopher Waller, who represents institutional continuity. However, the name attracting the most attention is Kevin Hassett, the former Chairman of the White House Council of Economic Advisers. Hassett is widely viewed by markets as the leading candidate and a likely frontrunner due to his perceived loyalty and long-standing relationship with the President.
Unlike the cautious approach of his predecessor, a Hassett appointment is anticipated by many on Wall Street to usher in a period of lower interest rates. The President himself has hinted that he already knows his choice, stating, “I think I already know my choice” and suggesting he might “go the standard way,” while also openly wishing he could replace Powell immediately. For the US and global economies, the coming announcement will mark the end of one of the most high-profile and controversial relationships in modern financial history, and the start of a new chapter for the central bank.