Fed Chair Race: Trump Seeks 'Next Greenspan' as Shortlist Narrows

Market focus on DXY and US Treasuries intensifies as the search for the next Federal Reserve Chair enters its endgame. Speaking at Davos, President Donald Trump revealed his list to replace Jerome Powell in 2026 has narrowed significantly.

The Contenders: Warsh vs. Rieder

With Kevin Hassett likely remaining at the NEC, attention has coalesced around two distinct profiles.

• Kevin Warsh: A former Fed Governor and “institutional hawk” deeply respected by Wall Street.
• Rick Rieder: The BlackRock CIO of Fixed Income. He argues the neutral rate should be lower (around 3%) and shows higher tolerance for deficits.

Trump explicitly stated he seeks a figure comparable to Alan Greenspan, signaling a desire for market respect combined with expansionary oversight.

Independence and Fiscal Shadows

The selection occurs amid reports of a Justice Department investigation into Powell's tenure, complicating the political landscape for the incoming Chair.

Meanwhile, Ken Griffin, founder of Citadel, warned in Davos that volatility in the JGB market acts as a “canary in the coal mine” for the US.

• Griffin cautioned that “bond vigilantes” could force fiscal discipline if US deficits remain unchecked, noting severe consequences for delayed corrections.