President Donald Trump announced on Wednesday that he is close to completing his search for a replacement for Federal Reserve Chair Jerome Powell, hinting that he has a preferred candidate in mind. During an interview with CNBC's Joe Kernen at the World Economic Forum in Davos, Switzerland, Trump mentioned that the search, initially encompassing as many as 11 individuals since September, is nearing its conclusion.
"I'd say we're down to three, but we're down to two. And I probably can tell you, we're down to maybe one, in my mind," Trump told Kernen. Still, he chose not to disclose the frontrunner's identity. The candidate pool consisted of former and current Fed officials, economists, and Wall Street investors.
The leading contenders were thought to include former Fed Governor Kevin Warsh, current Governor Christopher Waller, National Economic Council chief Kevin Hassett, and Rick Rieder, head of fixed income at BlackRock. Trump complimented all candidates during the interview, particularly describing Rieder, the latest interviewee, as "impressive."
In recent days, Trump expressed a preference for Hassett to continue his NEC role, likely disqualifying him from consideration. Treasury Secretary Scott Bessent managed the interview process, although Trump had previously supported Bessent for the Fed role. On Wednesday, Trump commented, "Scott only wants to stay where he is."
This statement comes amid mounting tension following a year of unusual unrest for the central bank. Trump's criticism of Powell escalated significantly in 2025, featuring verbal criticisms and threats of dismissal, as well as an attempted removal of Governor Lisa Cook, which subjected Trump's authority over the Fed to Supreme Court scrutiny earlier on Wednesday.
With Powell's departure as chair seeming inevitable, questions arise regarding whether he'll fulfill the remaining two years of his term as governor. His continued presence could influence monetary policy and counterbalance Trump's attempts to steer Fed decisions.
Trump expressed little concern over Powell's choice, stating, "We live with the cards you're dealt. If that happens, his life won't be very, very happy, I don't think, by doing it. I think he wants to get out. He has not done a good job." He also criticized Powell for a costly renovation at Fed headquarters, under DOJ investigation, asserting, "I could have done it for $25 million and it would have been nicer than what they're doing."