The race to select the next US Federal Reserve chair is entering its final phase, with President Donald Trump expected to begin interviewing the top contenders this week.
The Financial Times reported on Tuesday that Treasury Secretary Scott Bessent has submitted a shortlist of four candidates to the White House. Among them is former Fed governor Kevin Warsh, whom Bessent is slated to meet on Wednesday, and National Economic Council director Kevin Hassett, widely viewed as the leading contender.
The remaining two candidates will be chosen from a broader pool of finalists, which includes current Fed governors Christopher Waller and Michelle Bowman, as well as BlackRock chief investment officer Rick Rieder.
Trump and Treasury Secretary Scott Bessent are expected to conduct at least one interview next week, with a final decision on the new Federal Reserve chair likely to be announced in January.
Despite the ongoing vetting process, Trump has hinted that he already has a preferred candidate in mind.
“We’re going to be looking at a couple different people, but I have a pretty good idea of who I want,” he told reporters aboard Air Force One on Tuesday.
Kevin Hassett remains the frontrunner — but not a lock
The upcoming interviews indicate that Kevin Hassett may not be the guaranteed pick many assumed, even though he is still widely viewed as the leading contender.
Earlier this month, prediction market odds on Kalshi and Polymarket surged in Hassett’s favor following Trump’s Dec. 2 remarks at the White House, where he casually referred to Hassett as a “potential Fed chair.” The comment was interpreted by many as a major clue about Trump’s thinking.
Hassett’s odds jumped to around 85% after those remarks, but have since eased to roughly 73%. Meanwhile, Kevin Warsh’s chances sit near 13% on Kalshi, a level that has held fairly steady throughout December.
Whoever ultimately takes over as Federal Reserve chair is expected to shape broader market conditions — including crypto — under the new leadership.
If selected, Kevin Hassett has emphasized that he intends to remain independent despite his close relationship with Trump. In an interview with The Wall Street Journal this week, Hassett said he would not simply follow presidential directives, noting, “You just do the right thing.”
He offered an example: “Suppose that inflation has gotten from, say, 2.5% to 4%. You can’t cut,” he said, stressing that he would rely on his own “judgment, which I think the president trusts.”
