Rick Rieder of BlackRock is gaining late momentum in his bid to become the next Federal Reserve chair, according to sources familiar with the situation, as President Donald Trump considers potential congressional resistance to his effort to install a more agreeable leader at the central bank.
The Thursday meeting between Trump and Rieder was successful, according to the sources, who requested anonymity to talk about the confidential discussions.
Important senators, including Republican Banking Committee member Thom Tillis, have cautioned that Trump’s Federal Reserve nominees will face increased examination following the Justice Department’s subpoena of the Fed last week regarding statements by Chair Jerome Powell about a headquarters renovation project. Powell, whose term ends in May, argues that the criminal investigation is an excuse to penalize him for failing to reduce interest rates fast enough.
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When questioned Friday about the selection process, Trump indicated he had settled on a candidate but refused to identify the person. “I believe I have it — in my mind, it’s decided,” he stated.
According to some sources, the competition has narrowed to four candidates: Rieder, National Economic Council Director Kevin Hassett, Federal Reserve Governor Christopher Waller, and former governor Kevin Warsh.
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Hassett initially led the pack and remained the favorite until Trump commented this week that he might prefer to keep Hassett in his present position. It remains uncertain whether this reflected a change in internal thinking or was merely a casual comment.
“Only President Trump knows who he will select for the Federal Reserve. As the president recently indicated, he will make his final decision public soon,” White House Press Secretary Karoline Leavitt said in a written statement on Saturday.
The subpoena of the Fed issued a week ago triggered widespread criticism, including a commitment from Tillis — who serves on the committee that would initially review any nominee — to block any Federal Reserve nomination until the issue is settled.
Some sources believe Rieder, who serves as BlackRock’s chief investment officer for global fixed income, might face a smoother confirmation process. A BlackRock spokesperson refused to comment on Rieder’s candidacy.
Employment figures released earlier this month indicated the job market stayed vulnerable at year-end, with a cautious hiring forecast ahead. Analysts anticipate continued limited employment prospects and slowing wage growth in the coming year, which could worsen voter concerns about affordability ahead of this year’s midterm elections.
Federal Reserve officials reduced interest rates three times in a row at the close of 2025, but have indicated they won’t be quick to make further cuts until they receive additional information on inflation and employment. Officials are anticipated to maintain current rates at their upcoming meeting on January 27-28.
Rieder has called the Fed’s independence “critical,” but has also echoed Treasury Secretary Scott Bessent in saying the central bank could be more “innovative” in how it uses its balance sheet.