US Treasury Secretary Scott Bessent has unveiled the five final candidates to succeed Federal Reserve Chair Jerome Powell, according to Commerzbank’s Head of FX and Commodity Research Thu Lan Nguyen.
The shortlist includes:
- Christopher Waller, current Fed Governor
- Michelle Bowman, Fed Board member
- Kevin Warsh, former Fed Governor
- Kevin Hassett, White House economic adviser
- Rick Rieder, BlackRock executive
“There are no surprises on the list; these names have circulated for weeks, so markets have shown little immediate reaction,” Nguyen noted.
She added that the White House is expected to favor a candidate aligned with the administration’s policy direction.
“It’s likely the President will choose someone he can rely on — a supporter of deeper interest rate cuts,” Nguyen said.
Commerzbank also cautioned that the politicization of the Fed could become more evident later this year.
“The real test will come when the Fed faces a trade-off between its inflation and employment mandates,” Nguyen explained. “As inflation pressures rise, that dilemma could strengthen the US Dollar (USD) in the months ahead.”