With current Federal Reserve chair Jerome Powell’s seat in hot water and being freed this May, Donald Trump will reportedly interview BlackRock’s Rick Rieder for the Fed chair position. Rick Rieder joins 3 other finalists for the Fed Chair position, which is set to open up on May 15 unless Jerome Powell chooses to step down sooner. Trump says he will make his selection in January.
Per a Fox Business report, BlackRock’s chief investment officer of global fixed income will be interviewed this Thursday. He will interview with Trump himself, chief of staff Susie Wiles, Treasury Secretary Scott Bessent, and deputy chief of staff Dan Scavino. This will be the fourth and last interview with a candidate to replace Federal Reserve Chairman Jerome Powell, the sources told Fox. The list of finalists includes former Federal Reserve Board Governor Kevin Warsh, National Economic Council Director Kevin Hassett, Federal Reserve Board Governor Christopher Waller, and now BlackRock’s Rieder.
Current Fed Chair in Hot Water
With his chair position set to end on May 15, Jerome Powell is also in hot water once again due to a probe opened by the Department of Justice. The Jerome Powell investigation was made public on Sunday, with the chair of the Fed confirming that the Department of Justice issued grand jury subpoenas on Friday. The reaction of Powell was a shock, as he connected the investigation conducted by the Federal Reserve to continuous political pressure on Fed authorities regarding interest rates.
Also Read: Jerome Powell Probe Sparks Dollar Risk as Fed Independence Cracks
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said Sunday. He also added: “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation.”
It’s no secret that Trump and Fed Chair Powell have been at odds since his return to the White House. The Fed has been slow to lower interest rates due to economic concerns and a long battle against inflation. Trump, meanwhile, has pushed and even threatened the Fed on numerous occasions to lower the rates. He has publicly called out Powell and threatened to try to fire him numerous times. Meanwhile, the BlackRock CIO Rieder has called for the Federal Reserve to lower interest rates to 3%. Now, with his position being freed up in May, Powell may not even keep his Governor’s role on the Fed Board once his time as Fed Chair expires.