The battle for the Federal Reserve chairmanship has reached a fever pitch, with undercurrents swirling in Wall Street and Washington, while Trump remains undecided.

Trump has not yet made a final decision on the next Federal Reserve chair, and after the candidate list was narrowed down to just Hassett in early December, Warsh re-entered the race with a strong interview last week. Wall Street titans and Trump allies are lobbying on all sides of the selection, which has evolved into an intense contest spanning the worlds of finance and politics. According to The Wall Street Journal, Fed Governor Waller was also interviewed by Trump this week and received support from top corporate executives. BlackRock executive Rick Rieder is scheduled to be interviewed at Trump’s private club in the final week of the year. This suggests that the pool of candidates has expanded again, and competition is fiercer than ever. Citing sources, The Wall Street Journal reports that Wall Street insiders have been actively lobbying for Warsh, calling government officials to secure support for him, with one goal being to exclude Hassett from consideration. Critics argue that Hassett’s relationship with Trump is too close, which may undermine his credibility as an independent central bank chair in the bond market. The market is clearly divided on the choice. In a quick survey of executives attending a New York conference on Wednesday, 81% of respondents supported Waller for Fed chair, while Hassett and Warsh split the remaining votes. Two Leading Candidates Face Different Doubts Both frontrunners, Hassett and Warsh, face credibility concerns. Wall Street critics believe Hassett’s current responsibilities include defending presidential policy and criticizing the Federal Reserve on television, which makes him unfit to lead an independent central bank. Warsh's disadvantage lies in his overt eagerness for the position. Some question whether his support for rate cuts and Trump’s broader economic agenda is entirely genuine. For months, he has maintained that he believes the Fed should cut rates and shrink its balance sheet. Despite business supporters arguing that Warsh is more likely than Hassett to maintain independence from the White House—being unlikely to push for rate cuts when economic conditions aren’t supportive—Trump has publicly stated that Warsh directly conveyed to him, during their conversations, that the Fed should cut rates. Former Dallas Fed President Richard Fisher said, “I think unless you make some kind of promise to President Trump, you won’t get the job.” Wall Street Titans Actively Involved in the Selection Battle JPMorgan CEO Jamie Dimon said at a private meeting in New York last week that he thought Hassett was more likely to quickly drive rate cuts, and that Warsh, if appointed Fed chair, would also perform excellently. Sources say Dimon has been in close contact with government officials on the Fed chair selection and expressed similar views on the main contenders, while also noting positive traits in other candidates. People close to Warsh and some in the Trump administration believe Dimon’s statements to key people inside and outside the government actually signal support for Warsh. In addition, renowned investor Stanley Druckenmiller, a long-term collaborator with Warsh and former mentor/boss to Treasury Secretary Bessent, said he has not actively lobbied Trump officials to appoint Warsh as Fed chair, but sources say he has made clear to his Wall Street allies that he supports Warsh for the position. Dark Horse Candidate Waller Gains Attention Waller’s inclusion on the candidate list is notable because, despite lacking personal ties to Trump, he possesses unique advantages not shared by other candidates: he has exhibited rational and consistent policy arguments on rate cuts and has a proven track record of driving reforms within the Fed. Supporters highlight that, from a relatively low-profile position, Waller has pushed for several reforms potentially aligned with Trump’s policy preferences: opposing race-based hiring programs, working to reduce the Fed’s initiatives on climate issues, halting central bank digital currency projects in favor of supporting private sector stablecoin development, and overseeing budget cuts at the regional Fed banks. Risk Warning and Disclaimer The market carries risks; investment requires caution. This article does not constitute personal investment advice and does not consider individual users’ specific investment objectives, financial situations, or needs. Users should assess whether any opinions, views, or conclusions contained herein are suitable for their circumstances. Investing based on this information is at your own risk.