Federal Reserve in Flux: The Race to Replace Powell

Treasury Secretary Scott Bessent has put forward five candidates to replace Jerome Powell as Chair of the Federal Reserve. The announcement comes as Bessent accompanied President Donald Trump on an Air Force One flight to Asia, where he expressed plans to conduct further interviews before delivering a 'good slate' of candidates to Trump after Thanksgiving. Trump's decision is expected by this year's end, potentially signifying significant shifts for the Federal Reserve.

The candidates in the running are Federal Reserve Governors Christopher Waller and Michelle Bowman, former Governor Kevin Warsh, White House Economic Adviser Kevin Hassett, and Rick Rieder, a senior managing director at BlackRock. The selection underscores forthcoming changes at the Federal Reserve, as Bessent leads the search amidst his published critiques of Fed policies post-2008 financial crisis and during the COVID-19 pandemic.

While Trump's intention to finalize the new Chair selection this year underscores the complexities surrounding Powell's status, some candidates, like Hassett, have shown longstanding loyalty to the Trump administration. Meanwhile, others, including Warsh and Waller, bring independent perspectives to the table. The ongoing search highlights the nuanced power dynamics within America's financial oversight landscape.