The quest for a successor to Federal Reserve Chair Jerome Powell has evolved once more, as an unexpected candidate emerges with increasing support: Rick Rieder of BlackRock. Although the decision remains uncertain, sources that the finance executive made a favorable impact on attendees during his recent interview with President Donald Trump. For several months, the Trump administration has hinted at an extensive roster of candidates poised to succeed Powell when his term as chair concludes in May. Treasury Secretary Scott Bessent has led the initiative to identify the pivotal economic position, offering Trump a shortlist of four candidates as Powell’s term approaches its conclusion: National Economic Council Director Kevin Hassett; former Fed Governor Kevin Warsh; Fed Governor Christopher Waller; and Rieder, chief bond investment manager at BlackRock. On Wednesday, Trump suggested that he has refined the pool of candidates. During a speech at the World Economic Forum in Davos, Switzerland, he reiterated his preference for Hassett, who has long been viewed as the leading candidate, to continue in his current position.
In a Wednesday afternoon interview, Trump remarked that Rieder was “very impressive. I would assert that we have narrowed it down to three, yet we are effectively at two.” He indicated that, in his estimation, there is perhaps only one remaining candidate on his list. This is not the first instance in which he has asserted such a position, only to subsequently alter his stance. The current indecision underscores the challenge of identifying a Trump loyalist who is acceptable to both markets and Congress, while also adept at maneuvering through the pronounced divisions within the Federal Reserve to achieve Trump’s goal of lower interest rates. The White House remains silent regarding the Federal Reserve chair selection process and potential candidates until a decision is reached by the president.
Rieder’s interview, occurring on the same day he was observed at a White House ceremony recognizing the Stanley Cup Champion Florida Panthers, represented the last planned candidate meeting for Trump, according to sources. Rieder’s initial meeting at the Oval Office with Trump featured Vice President JD Vance, White House Chief of Staff Susie Wiles, and Bessent, according to sources. Dan Scavino was present as well. Rieder’s candidacy has largely gone unnoticed, despite being held in high esteem on Wall Street and making frequent appearances on business television to express his perspectives on markets. Rieder, who engaged in a lengthy discussion with Bessent in New York last September and has consistently appeared on the Fed shortlist since then, stands out as the sole candidate among the final four lacking experience at the Fed or in government service.
The outsider status is perceived favorably within the White House, as Trump’s economic advisors consistently advocate for a reformation in the operational dynamics of the central bank. Rieder’s television appearances and BlackRock commentary have garnered favorable assessments within the administration, and he has articulated an optimistic view of the US investment environment. He has argued that the Fed should deliver modest rate cuts, potentially lowering the benchmark rate to 3%, citing labor market concerns and inequality. Trump has continued to criticize Powell for moving too slowly on rates, while Fed officials have signaled a preference to hold borrowing costs steady. Rieder’s background spans fixed-income markets, portfolio management, advisory roles at the New York Fed, and service on the US Treasury Borrowing Advisory Committee, underscoring the unconventional profile of a candidate now firmly in contention.