Five Finalists Announced for Federal Reserve Chair
Treasury Secretary Scott Bessent confirmed on October 27, 2025, that the list of candidates to succeed Federal Reserve Chair Jerome Powell has been narrowed to five finalists. President Donald Trump indicated that a decision on the new chair is expected before the end of the year. The finalists include current Federal Reserve Governors Christopher Waller and Michelle Bowman, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock executive Rick Rieder. These names had been previously reported by CNBC earlier in October.
Selection Process Underway
Bessent, who had himself been considered a potential candidate, is conducting interviews and expects to complete a final round before presenting a recommended slate to President Trump after the Thanksgiving holiday. Speaking aboard Air Force One, Trump reaffirmed his intention to announce the Fed chair replacement by the end of 2025. Jerome Powell’s current term ends in May 2026, after which he may either step down or continue as a governor until 2028.
Fed Governors and Monetary Policy Outlook
President Trump currently has three appointees on the Federal Reserve’s seven-member Board of Governors: Christopher Waller, Michelle Bowman, and Stephen Miran. Miran, confirmed in September as head of the Council of Economic Advisers, is serving an unexpired term ending in January and is not expected to be reappointed. If Powell decides to leave the Fed, Trump’s appointments would increase to four members. Efforts to remove Governor Lisa Cook from the board have so far been unsuccessful. Alongside the governors, five regional Federal Reserve presidents rotate as voting members of the Federal Open Market Committee (FOMC), which meets this week to decide on monetary policy.
Interest Rate Decision Expected This Week
Markets are pricing in a near certainty that the FOMC will reduce its benchmark overnight borrowing rate by 25 basis points in the upcoming meeting on Wednesday. This would follow a similar quarter-point rate cut implemented in September.
FinOracleAI — Market View
The narrowing of the Federal Reserve chair candidates to five finalists reflects a focused approach to shaping U.S. monetary policy leadership amid evolving economic challenges. President Trump’s anticipated appointment before year-end underscores the administration’s intent to influence the Fed’s direction ahead of Powell’s term expiration.
- Opportunities: Potential for a more dovish Fed policy to support economic growth through rate cuts.
- Risks: Increased political influence on Fed governance could raise concerns about central bank independence.
- Appointment of candidates with diverse backgrounds may bring fresh perspectives to monetary policy.
- Market volatility could increase around the announcement and subsequent policy shifts.
Impact: The selection of a new Fed chair will be closely watched by markets and policymakers, potentially shaping U.S. monetary policy trajectory and investor sentiment into 2026.
