These 5 people are on the shortlist to succeed Powell

Investing.com -- The race to replace Federal Reserve Chair Jerome Powell has entered a decisive phase, with five candidates now on the shortlist, according to Erste Group analysts.

U.S. President Donald Trump and Treasury Secretary Scott Bessent have named Fed Governors Christopher Waller and Michelle Bowman, White House economic adviser Kevin Hassett, former Fed Governor Kevin Warsh, and Rick Rieder, head of fixed income at BlackRock, as contenders for the post.

“Bessent plans to conduct a second round of interviews with these individuals this month before presenting a shortened list of nominees to the president before Thanksgiving,” Erste analyst Maurice Jiszda said.

Trump has indicated he could announce his choice before the end of the year, an earlier-than-usual timeline that would allow a “chair-in-waiting to influence investor expectations about the future path of interest rates,” Erste noted.

However, such an early move could also create tension with current policymakers, “potentially putting Powell’s successor in the uncomfortable position of publicly challenging his future colleagues.”

According to Erste, the new Fed chair will likely also fill the board seat currently held by Governor Miran, whose term ends in January, allowing the appointee to participate in March and April rate meetings ahead of assuming the top role in May.

Jiszda highlighted Waller’s “academic rigor” and support for “preventive monetary easing,” Bowman’s “regulatory experience” and focus on the labor market, and Warsh’s calls for a more flexible, contemporary monetary policy.

Hassett, the analyst noted, is a “staunch ally of Trump” and “vocal advocate of significantly lower interest rates,” while Rieder is “highly regarded in financial circles.”

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