• Trump is conducting final interviews for the next Federal Reserve Chair, set to begin in May 2026, with Christopher Waller (current Fed Governor) and Kevin Warsh (former Fed Governor) among the finalists alongside frontrunner Kevin Hassett.
  • Treasury Secretary Scott Bessent has narrowed candidates to four after initial interviews with 11, including Waller, Warsh, Michelle Bowman (Fed Vice Chair for Supervision), and Rick Rieder (BlackRock (BLK)'s global CIO); Trump plans one more interview next week before nominating in early January 2026.
  • Selection of Hassett could accelerate rate cuts per Trump's preferences, risking Fed independence and reigniting inflation; recent 10-year Treasury yield rises reflect market volatility from these uncertainties.

In a move that could reshape U.S. monetary policy, former President Donald Trump is set to interview current Federal Reserve Governor Christopher Waller for the central bank's top job, according to people familiar with the matter. This follows Trump's meeting last week with former Fed Governor Kevin Warsh, as the selection process enters its final stages ahead of a nomination expected in early January 2026. Treasury Secretary Scott Bessent has whittled down an initial list of 11 candidates to four finalists, with Waller, Warsh, Fed Vice Chair for Supervision Michelle Bowman, and BlackRock's global CIO Rick Rieder in the running, though frontrunner Kevin Hassett remains the favorite.

Efforts to finalize the nomination have hit a snag as Trump maintains control over the process, described by insiders as a "reality show" style of interviews. Trump met with Warsh on December 10, 2025, per reports, and plans one more interview next week before making his decision. Without a deal on a candidate that balances market expectations and political pressures, the Fed could face heightened scrutiny over its independence. Hassett, who has moderated his views at recent events like a WSJ gathering, stresses data-driven decisions over politics, but his potential appointment has sparked concerns about accelerated rate cuts that might reignite inflation.

Market trends show Wall Street favoring Hassett despite worries over politicized policy, with bond market turbulence tied to low-rate expectations conflicting with inflation risks. The 10-year Treasury yield has seen recent spikes, reflecting volatility from these uncertainties. In a brief statement, a source close to the process said, "The focus is on finding a chair who can navigate both economic stability and political realities," though attempts to reach Bessent's office for comment were unsuccessful. As the deadline looms, stakeholders from consumers to businesses brace for potential impacts, with short-term nomination news likely to drive further yield movements and long-term risks of inflation if rates are cut too aggressively.