Fed Chair Shock: BlackRock’s Rieder Emerges as Trump’s ‘Dark Horse’

The race to succeed Jerome Powell has taken an unexpected turn with the entry of Rick Rieder, BlackRocks Chief Investment Officer of Global Fixed Income. Following a “successful” meeting with President Trump last week, Rieder has shot up the betting markets, disrupting a contest previously dominated by Kevin Warsh and Kevin Hassett.

Rieders sudden prominence comes as Kevin Hassett, Director of the National Economic Council, reportedly steps back from consideration to remain in his current post. This leaves the field as a “three-way chess match” between Rieder, former Governor Kevin Warsh, and current Governor Christopher Waller.

The 'Safe' Pragmatist

Rieder represents a break from academic tradition. Like Powell, he lacks an economics PhD, but his deep connection to financial markets is viewed as an asset. His policy views align closely with the administrations current economic priorities:

• Neutral Rate: Rieder has argued for normalizing rates around 3%.
• Inflation Tolerance: He has expressed willingness to tolerate slightly above-target inflation to support debt stability and employment.
• Deficit Doveness: Unlike traditional hawks, Rieder has publicly downplayed immediate concerns regarding the US federal deficit.

Political Calculus

The shifting political landscape in Washington favors a candidate who can navigate a divided Senate. While Jerome Powell faces hostility from the Department of Justice over renovation contracts—a dispute Powell labels “political retaliation” for delayed rate cuts—Rieder is seen as a clean slate.

Insiders suggest Rieder may face less resistance during Senate confirmation than his rivals. Treasury Secretary Bessent has indicated that President Trump aims to announce the nominee around the upcoming Davos forum to quell market uncertainty.