Market predicts BlackRock’s Rieder will next chair the Fed. What’s at stake?
The hunt for the next Federal Reserve chair is nearing its end, with BlackRock’s Rick Rieder emerging as the frontrunner according to prediction markets. Despite volatile sentiments and competition from others like Kevin Warsh, Rieder’s favorability has surged after Trump praised him in a recent CNBC interview. However, some on Wall Street remain skeptical, believing the race is still competitive and that the decision ultimately lies with a fickle president. Former Fed Vice Chair Roger Ferguson also believes the choice may come down to “one of the Kevins.” Trump could still throw a wildcard by hiring someone not among the finalists, with Treasury Secretary Scott Bessent being a potential option. Rieder’s views align with Trump’s desire for lower interest rates, but his support for Fed independence could be a point of contention. Despite his qualifications and experience managing a $2.5 trillion bond portfolio at BlackRock, Rieder’s appointment remains uncertain as the decision remains in the hands of the president.
Market Expectations for Next Fed Chair
Investors are optimistic about the possibility of BlackRock’s Rieder being selected as the next Federal Reserve chair, even though he has not previously held a policy position. Analysts believe Rieder’s focus on detailed corporate data analysis could bring a fresh perspective to the role.
Potential Market Response
While President Trump’s satisfaction with the next Fed chair remains uncertain, the markets are likely to welcome any candidate chosen by Trump, including Rieder. With a background in fixed income and a bottom-up analytical approach, Rieder could be seen as a relatable figure within the financial markets.
