The selection process for the new US Federal Reserve chair is approaching its conclusion, as US President Donald Trump is reportedly preparing to start interviews with candidates for the position this week.
A report from the Financial Times on Tuesday noted that Treasury Secretary Scott Bessent has submitted a list of four potential candidates to the White House.
Among those is former Fed governor Kevin Warsh, who is scheduled to meet Bessent on Wednesday. Another contender is National Economic Council director Kevin Hassett, who is considered the frontrunner for the position.
The remaining candidates will be chosen from a group of other finalists, which includes Fed governors Christopher Waller and Michelle Bowman, along with BlackRock chief investment officer Rick Rieder.
Trump and Bessent are anticipated to conduct at least one interview next week, with an announcement expected in January.
However, Trump has indicated he has a particular candidate in mind.
“We’re going to review a few different individuals, but I have a strong idea of who I prefer,” Trump told reporters on Air Force One on Tuesday.
Kevin Hassett is a frontrunner for Fed chair role
The upcoming interviews suggest that while Hassett remains a favorite, he may not be guaranteed the role as once believed.
Earlier this month, prediction market odds on Kalshi and Polymarket surged for Hassett after Trump made comments at the White House on Dec. 2.
While greeting guests, Trump referred to Hassett as a “possible Fed chair,” leading many to believe he had inadvertently dropped a significant hint.
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Following Trump’s remarks last week, Hassett’s odds soared to 85%, but they have since decreased to approximately 73%, while Warsh’s odds remain at 13% on Kalshi as of this writing, fluctuating within this range throughout December.
Regardless of who ultimately assumes the chair position, the transition is set to affect crypto markets amidst the new leadership.
If chosen, Hassett has claimed he will remain nonpartisan in his approach to running the Fed, despite his close association with Trump. In a conversation with The Wall Street Journal this week, Hassett stated that “You simply do what’s right” when asked if he would adhere to Trump’s directives unconditionally.
“If inflation were to rise, for instance, from 2.5% to 4%, you cannot simply cut,” Hassett remarked, adding that he would depend on his own “judgment, which I believe the president trusts.”
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