BlackRock CIO emerges as a leading contender for next Fed chair… “Relatively less political pushback”

A senior BlackRock executive is newly emerging as a contender in the field of candidates to become the next chair of the U.S. Federal Reserve (Fed). Observers say U.S. President Donald Trump is considering a nominee who would face relatively less burden in securing Senate confirmation.

On the 19th (local time), Walter Bloomberg, citing sources familiar with the matter, reported: “Rick Rieder, BlackRock’s chief investment officer for fixed income (CIO), is being discussed as a leading candidate for Fed chair. Rieder has recently been steadily gaining ground within the field, and with relatively less political backlash, the confirmation process could be smoother.”

Other names being floated for the next Fed chair include Rieder; Kevin Hassett, director of the White House National Economic Council (NEC); Fed Governor Christopher Waller; and former Fed Governor Kevin Warsh. Hassett was initially seen as the front-runner, but the picture is said to be shifting as Trump considers keeping him at the White House.

Markets are focusing on the fact that Rieder has emphasized the Fed’s independence. He is known to support an independent policymaking structure at the central bank, while also maintaining a relatively open stance toward more innovative uses of the Fed’s balance sheet.

Trump has not yet announced a final nomination. As the selection of the Fed chair could influence the future stance of monetary policy and broader financial markets, market attention to changes in the candidate field is expected to persist for the time being.