Trump's Potential Fed Pick: Who's on the List?

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  Media and Entertainment on Sun, Dec 28th, 2025 by Fortune

The Looming Succession: Who Will Trump Pick to Lead the Federal Reserve?

As Donald Trump’s potential return to the White House in 2026 draws closer, a significant question is emerging: who will he appoint as the next Chair of the Federal Reserve? The article from Fortune, published December 27, 2025, delves into this critical decision, highlighting several contenders and exploring the underlying ideological shifts that are likely to influence Trump's choice. The selection carries immense weight, impacting everything from interest rates and inflation to economic growth and financial stability – a point underscored by the Fed’s recent struggles with persistent inflation despite aggressive rate hikes (as noted in related reporting).

The current Chair, Jerome Powell, whose term expires in 2026, has become increasingly unpopular within Republican circles. While initially appointed by Trump himself, Powell's insistence on maintaining independence and his willingness to raise interest rates aggressively to combat inflation have drawn the ire of many who believe he’s stifling economic growth and hurting American businesses. Trump has openly criticized Powell, calling him a "disaster" and suggesting that he would replace him if re-elected. This public animosity significantly narrows the field of potential successors.

Fortune's analysis identifies several leading candidates, broadly categorized by their perceived alignment with Trump’s economic philosophy. Central to this is a desire for a Fed Chair who isn't solely focused on inflation targeting but also prioritizes employment and growth – a shift away from what some view as Powell’s overly hawkish stance.

The Frontrunners: Chris Waller & Larry Fink

At the top of many lists is Chris Waller. As a current member of the Federal Reserve Board of Governors, Waller already holds a position within the system. He's considered a pragmatic choice, having previously served as the President and CEO of the Federal Reserve Bank of St. Louis. Importantly, while not an outright ideologue, he has expressed concerns about the Fed’s current policies and hinted at a willingness to explore alternative approaches. This makes him palatable to Trump without necessarily requiring a complete overhaul of the institution. Waller's background in banking also aligns with Trump's preference for candidates with experience in the financial sector.

Perhaps surprisingly, Larry Fink, CEO of BlackRock, is also being seriously considered. While Fink has historically been seen as a mainstream figure within finance, his recent public statements have reflected a growing alignment with some of Trump’s economic arguments. He has openly criticized “woke capitalism” and advocated for policies that prioritize American manufacturing and energy independence – themes strongly echoed by the former president. While Fink's ties to BlackRock (a company facing increasing scrutiny over its environmental, social, and governance [ESG] investing practices) could present a political hurdle, Trump’s willingness to challenge conventional wisdom might outweigh these concerns. The article notes that Fink has actively cultivated relationships with key figures within the Republican party, further solidifying his position as a potential contender.

Dark Horses & Considerations:

Beyond Waller and Fink, several other names are in the mix, although considered less likely at this stage. These include:

• Kevin Hassett: A former chairman of Trump’s Council of Economic Advisers, Hassett is a staunch advocate for tax cuts and deregulation – policies that align with Trump's broader economic agenda. However, his previous tenure within the administration might make him appear too predictable.
• Mohamed El-Erian: A prominent economist and Allianz chief investment officer, El-Erian’s global perspective could be appealing to Trump, but his views on monetary policy are generally considered more dovish than what the former president likely desires.
• Bill Dudley: A former New York Fed President, Dudley has become a vocal critic of Trump's economic policies, making him an extremely unlikely candidate.

The article also highlights some key considerations shaping Trump’s decision-making process:

• Political Loyalty: Trump prioritizes loyalty above all else. Any potential nominee will need to demonstrate unwavering support for his agenda and be willing to publicly defend his policies.
• Inflation vs. Growth: The balance between controlling inflation and promoting economic growth is a central tension. Trump’s preferred candidate will likely lean towards prioritizing growth, even if it means tolerating slightly higher inflation. This echoes the broader debate about whether the Fed's current approach risks triggering a recession (as some economists have argued).
• Independence vs. Control: The Federal Reserve's independence is enshrined in law, but Trump has repeatedly questioned its necessity. He will likely seek a Chair who understands and respects his authority, even if it means subtly influencing monetary policy decisions.

The Implications of the Choice:

Regardless of who Trump ultimately selects, the appointment would signal a significant shift in the direction of U.S. monetary policy. A more politically aligned Fed Chair could lead to lower interest rates, increased government spending (through pressure on the Fed to support Treasury financing), and a greater emphasis on employment over inflation control. This could have profound implications for financial markets, currency values, and overall economic stability. The article concludes that the coming months will be crucial as Trump’s team begins to seriously vet potential candidates, setting the stage for what promises to be a contentious confirmation process – one with potentially far-reaching consequences for the American economy.

Ultimately, the choice of Federal Reserve Chair is not just about selecting an economist; it's about shaping the future economic landscape under a second Trump administration.