Kevin Hassett, Director (L) of the National Economic Council, and Kevin Warsh, former governor of the US Federal Reserve.
Reuters
President Donald Trump’s new comments on a potential candidate who will replace Jerome Powell as the next chair of the Federal Reserve has sparked a wave of speculation about the forecast market.
Former Fed Governor Kevin Wahsh, current Fed Governor Christopher Waller and Treasury Secretary Scott Bescent were floating as candidates to lead the central bank.
In a wide range of interviews with CNBC’s “Squawk Box,” Trump praised Hassett and Warsh, and revealed that Bescent, who enjoys his current post as Treasury Secretary, has fought himself.
“He’s very good,” Trump said, referring to Wash. “Sometimes, they’re all very good until you put them there, and they’re not that good. But… I think he’s a very good guy. Kevin and Kevin, both Kevin are very good.”
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Betting Calci on the forecast market moved quickly after Trump’s comments and was appointed to Hassett and Warsh as the next Fed chair with a 35% chance, respectively. Waller, who Trump didn’t mention in the interview, had a 15% chance of becoming his pick, and his odds were reduced slightly after the interview.
Both Hassett and Warsh advocate for lower interest rates. The current chairman, Powell, who ended in May 2026, has been a frequent target for Trump’s criticism of keeping interest rates high.
Governor Adriana Kugler announced Friday that she will resign this week. The move would allow Trump to set up someone at the Fed president, and the candidate could be moved to the role of chairman when Powell’s term expires.
In his first term, Trump’s former economic adviser Judy Shelton was assigned a 6% chance to replace Powell of Karshi. David Malpass, a former government employee who served as chairman of the World Bank Group from 2019 to 2023, currently has a 4% chance of being in the forecast market.
Trump himself even received a 1% vote to lead the Fed in Karshi.
