Intentional or not, any hints Jerome Powell may drop about his outlook on the economy have the potential to move markets. While the chair of the Federal Reserve has insisted time and again that the only factors he is focused on is a mandate of inflation at 2% and maximum employment, he’ll also be keeping Wall Street in his periphery.
But before too long, the attention of analysts and investors may move elsewhere: President Trump is ready to announce his nomination.
“I know who I am going to pick,” Trump told reporters on Air Force One on his way back to Washington on Sunday night. “We’ll be announcing it.”
With Chair Powell (himself a Trump nominee) coming to the end of his term next spring, speculation has been rife throughout 2025 as to who will replace him. The White House has been transparent about potential names on the list: “two Kevins” (Trump’s chief economic advisor Kevin Hassett and former Fed governor Kevin Warsh) as well as some names within the Fed. These have included current Federal Open Market Committee members such as governors Chris Waller and Michelle Bowman. BlackRock’s Rick Rieder has also been a name floated in contention.
One person who has been continually lobbied for the job is Treasury Secretary Scott Bessent, who told his boss he doesn’t want to leave his current cabinet position.
