Trump signals near-choice for next Federal Reserve chair as Davos talks narrow field

President Donald Trump told CNBC in Davos that he has substantially narrowed his search for a successor to Federal Reserve Chair Jerome Powell, saying the vetting process “was down to three, but we’re down to two. And I probably can tell you we’re down to maybe one in my mind.” He declined to name the person he has in mind and signaled a decision could be imminent.

The search for a new Fed chair began in September and at one point included as many as 11 potential nominees, Treasury Secretary Scott Bessent has led the interview process. Mr. Bessent has said the president had whittled the field to four and expected a decision shortly before or after the Davos summit. Finalists widely identified in the White House deliberations include former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, White House economic adviser Kevin Hassett and Rick Rieder, BlackRock’s head of fixed income; sources indicate Rieder was the last of the finalists to be interviewed.

Mr. Trump signaled a preference to keep Mr. Hassett in his current role as National Economic Council director, telling CNBC, “I’d like to actually keep him where he is if you want to know the truth. I don’t want to lose him. He’s so good on television.” He also praised Mr. Rieder as “very impressive” and called Scott Bessent “fantastic” while saying Bessent wanted to remain in his current job.

The president framed his choice in ideological and practical terms, saying he wanted a Fed chair in the mold of former Chair Alan Greenspan and renewing public criticism of Mr. Powell’s leadership. He accused Powell of waiting too long to cut interest rates and faulted the Fed’s approach to market responses to economic data, stating, “In the old days, when you had a good run, you’d announce good numbers and the stock market would go up. Now the stock market crashes every time because they think everyone’s going to raise rates.”

The politics surrounding the selection have complicated confirmation prospects. The administration has issued subpoenas to the Fed relating to its Washington headquarters renovation, a dispute that Mr. Powell has characterized as political pressure. That conflict has prompted at least one Republican senator on the Senate Banking Committee to state opposition to any nomination until the matter is resolved. When asked about that stance, Mr. Trump replied “whatever” and added, “He’s not going to be a senator too much longer.”

Those dynamics mean a nominee favored by the White House could face a contentious confirmation process, even as the Fed braces for a leadership transition: Mr. Powell’s term as chair expires in May, and officials have speculated he could remain at the central bank in another role, preserving influence over policy. Administration officials say a final choice remains under review and that a formal nomination could come soon.

The selection will shape the Fed’s approach to interest rates and financial markets at a critical juncture for the economy. A chair with a consensus-building reputation is likely to encounter different obstacles than a more partisan pick, and the White House’s apparent desire both to retain a high-profile economic communicator in the West Wing and to place a like-minded figure at the Fed sets up a consequential trade-off for the administration.