Race to Lead the Fed in 2026: The Four Prominent Names
With only four names remaining, the search for the next Chair of the US Federal Reserve is set to remain a focal point for global markets. Below is a snapshot of the leading candidates expected to succeed Jerome Powell.
Jerome Powell’s term as Chair of the Federal Reserve is scheduled to end in May 2026. As the deadline approaches, investors and policymakers alike are closely watching who will be tapped to steer the world’s most influential central bank.
US Treasury Secretary Scott Bessent said the shortlist has narrowed from five candidates to four: current Fed Governor Christopher Waller, former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, and BlackRock Chief Investment Officer Rick Rieder. Fed Governor Michelle Bowman is no longer under consideration.
Kevin Warsh, The Hawk Who Changed Course
Kevin Warsh is no stranger to the Federal Reserve. He served as a Fed Governor from 2006 to 2011. After leaving the central bank, Warsh became known as a harsh critic of Fed policies under both Janet Yellen and Jerome Powell.
Interestingly, Warsh's policy stance has shifted. Where he was once known for being hawkish and heavily emphasizing inflation control through high interest rates, he now leans more towards advocating for monetary easing. His extensive experience, strong political connections, and his family's ties to Donald Trump's circle have positioned him as a leading contender in the race.
Kevin Hassett, The White House Loyalist
Kevin Hassett, long considered a Trump favorite, faces skepticism over whether he could maintain the Fed’s independence.
In a CNBC interview in early December, Hassett stressed that central bank independence is “critically important,” while also voicing support for lower interest rates. He argued that any shift in monetary policy should be driven by data-based consensus.
Yet, market skepticism persists. The Financial Times reported that bond investors are concerned Hassett could push for overly aggressive rate cuts, potentially undermining financial stability.
Christopher Waller, The Market's Chosen One
Christopher Waller reportedly held a well-received interview with Trump in December. Although he lacks the political backing enjoyed by some rivals, Waller has earned strong support from Wall Street.
He is widely viewed as a seasoned technocrat with deep expertise in monetary policy and a solid track record at the Fed. His appointment could also create a vacancy on the Fed’s Board of Governors, allowing for the nomination of another dovish policymaker—an outcome that could further increase the likelihood of rate cuts in the year ahead.
Rick Rieder, Wall Street’s Dark Horse
Rick Rieder is the least spotlighted candidate. Although Trump was reportedly planning to interview him at Mar-a-Lago, there have been no further developments. In public statements, Rieder has chosen to be cautious and reluctant to reveal his policy views. He referred to the nomination as a great honor.
As a market practitioner, Rieder is likely to adopt an accommodative stance towards global financial conditions. He understands the sensitivities of the bond market, liquidity, and systemic risks.
However, his lack of a monetary policy track record makes his policy direction the hardest to predict.
Who Will Prevail?
With four contenders still in play, competition for the Fed’s top job is intensifying. Warsh stands out for his experience and political connections, Hassett offers loyalty but faces market doubts, Waller is widely seen as the most pragmatic choice, and Rieder remains an enigmatic wild card.
Regardless of who ultimately prevails, markets increasingly expect a shift toward looser monetary policy. The key question is not whether interest rates will be cut, but how quickly and how aggressively the next Fed Chair will move.