President Donald Trump has apparently decided on his pick to be the next chairman of the Federal Reserve, and will announce the nomination on Friday.
The Wall Street Journal reported Thursday that Trump planned to make the announcement in the morning, following a months-long vetting process led by Treasury Secretary Scott Bessent. The Treasury secretary is recommending Trump nominate one of four finalists: National Economic Council Director Kevin Hassett, BlackRock executive Rick Rieder, current Federal Reserve Board of Governors member Christopher Waller (who Trump appointed in 2020) and former Fed board member Kevin Warsh.
Whoever Trump nominates will likely face questioning from U.S. senators over whether they will prioritize Trump's wishes in lowering interest rates or if they will listen to economists and other experts who have cautioned against lowering interest rates due to concerns about inflation. The new Fed chair will replace current Fed chair Jerome Powell, who has consistently bucked Trump's demands to lower interest rates.
Powell's tenure as chairman may end in May of this year, though his term as a member of the Fed's board of governors lasts through December 31, 2028. If Powell chooses to remain on the board, he could work to stymie Trump's push to drive down interest rates, as any official decision would require a majority of board members.