Baisent made a "deep impression" after the interview; BlackRock executive's ranking rises in the "Fed Chair race".

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After a two-hour interview with Treasury Secretary Bessent that received positive feedback, BlackRock Executive Director Rick Rieder has risen up the shortlist of candidates for Federal Reserve Chair.

On September 13, according to media reports, a government official revealed that Bessent held extensive discussions with Rieder last Friday, covering topics such as monetary policy, the Fed’s organizational structure, and regulatory policy.

The official said, Bessent was deeply impressed by Rieder’s extensive experience in the markets and his deep understanding of both micro- and macroeconomic factors.

According to the aforementioned government official, Bessent has so far interviewed 4 of the 11 publicly mentioned candidates, and the selection process is still ongoing. It is expected that one or two new names will be added to the list, and ultimately Bessent will present Trump with a shortlist of three to four candidates.

Earlier this week, Rieder said that based on his interpretation of economic indicators, the Fed should cut rates by 50 basis points—twice the widely anticipated 25 basis points. He emphasized the importance of Fed independence and suggested the central bank could be more “innovative.”

BlackRock executive wins Bessent's favor

Bessent’s evaluation of Rieder focused on his market experience and forward-thinking abilities.

The report noted, citing people familiar with the Treasury Secretary’s thinking, Bessent especially appreciates Rieder’s ability to assess the economy using a forward-looking framework rather than relying on lagging data. This intuitive analytical style left a similar impression as did Fed Governor Waller during earlier discussions with Bessent.

Trump had previously voiced dissatisfaction with Powell’s data-driven approach at the Fed, nicknaming him “too late.” Rieder’s analytical method fits the administration’s expectation for a more flexible monetary policy making approach.

The above sources also said, Bessent believes Rieder possesses a calm demeanor and deep understanding of non-bank financial institutions, qualities that would help him excel as Fed Chair.

Sources said, If Rieder serves as Fed Chair, he would bring a calm temperament and in-depth knowledge of financial firms outside the banking system.

During the meeting with Bessent, two senior aides were also present: one a macroeconomist, the other an expert in regulation and markets.

Rieder oversees BlackRock’s fixed-income operations and is one of the firm’s most senior executives. He joined BlackRock in 2009 after nearly 20 years at Lehman Brothers.

Earlier this week, Rieder said in an interview: “A 25-basis-point move in the overnight lending rate is not that exciting.” He suggested the Fed could consider “how to use the balance sheet, how to use liquidity, and the path of the yield curve.”

Rieder emphasized that the Fed’s independence is “crucial,” as investors need to maintain confidence in the dollar, debt, and debt financing, but he also believes the central bank could be more “innovative.”

Fed Chair selection process continues

Trump said last week that his preferred candidates for Fed Chair include Waller, former Fed official Kevin Warsh, and National Economic Council Director Kevin Hassett. However, he has authorized Bessent to lead a comprehensive selection process.

In addition to Rieder, Waller, Warsh, and Hassett, other Fed Chair candidates being considered by Bessent include:

Fed Vice Chair Michelle Bowman, former Fed official James Bullard, Fed Vice Chair Philip Jefferson, former Fed Governor and Bush administration official Larry Lindsey, Dallas Fed President Lorie Logan, former Bush administration official Marc Sumerlin, and Jefferies Chief Market Strategist David Zervos.

Bessent plans to provide Trump with a final shortlist of candidates later this fall. Powell’s term as Chair expires in May next year.

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