The selection process for the next US Federal Reserve chair is approaching its conclusion, with President Donald Trump reportedly scheduled to begin interviewing finalists for the position this week.
According to a report from the Financial Times (FT) on Tuesday, Treasury Secretary Scott Bessent has presented a list of four potential candidates to the White House.
Among these finalists is former Fed governor Kevin Warsh, whom Bessent is slated to meet with on Wednesday. National Economic Council director Kevin Hassett is also on the list and is widely considered the frontrunner for the role. The remaining two candidates will be selected from a pool of other finalists, which includes Fed governors Christopher Waller and Michelle Bowman, and BlackRock chief investment officer Rick Rieder.
President Trump and Secretary Bessent are expected to conduct at least one interview next week, with a decision anticipated in January.
However, President Trump has indicated that he already has a preferred candidate in mind. Speaking to journalists on Air Force One on Tuesday, Trump stated, "We’re going to be looking at a couple different people, but I have a pretty good idea of who I want."
Kevin Hassett Emerges as a Leading Candidate for Fed Chair
The upcoming interviews suggest that Kevin Hassett may not be the undisputed choice for the role, despite being considered the favorite. Earlier this month, prediction market odds on platforms like Kalshi and Polymarket saw a significant surge for Hassett following remarks made by President Trump at the White House on December 2.
During a welcome for guests, Trump referred to Hassett as a "potential Fed chair," leading many to interpret this as a strong hint regarding his preferred nominee.
Following Trump's comments last week, Hassett's odds on Kalshi rose to 85%. While these odds have since decreased to approximately 73%, Warsh's odds remained around 13% throughout December.
Regardless of the final selection, the new Federal Reserve chair's decisions are likely to influence cryptocurrency markets.
If appointed, Hassett has stated his intention to remain apolitical in his leadership of the Fed, despite his close association with President Trump. In a conversation with The Wall Street Journal this week, Hassett responded to a question about whether he would follow Trump's orders by saying, "You just do the right thing." He elaborated on his approach, stating, "Suppose that inflation has gotten from, say, 2.5% to 4%. You can’t cut," and added that he would rely on his own "judgment, which I think the president trusts."