The final candidate for Federal Reserve Chair recently met with President Trump, keeping his chances alive despite the President’s unpredictable decision-making style. According to Fox Business, Edward Lawrence reports that Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, stands out among the finalists because he has no prior Federal Reserve experience. This was viewed positively by those present at the interview.
The meeting included President Trump, Rieder, Raphael Bostic, Chief of Staff Susie Wiles, and Deputy Chief of Staff Dan Scavino. During the discussion, Rieder focused on topics such as Federal Reserve profitability, the importance of monetary policy stability, and the dynamics of US debt.
It appears that Bostic may be advocating for Rieder, as he is likely the candidate the markets would find most reassuring along with Christopher Waller. However, President Trump has publicly favoured Kevin Warsh and Kevin Hassett, both regarded as likely to support rate cuts, albeit only if they can persuade the rest of the Federal Reserve board.
Rieder is well-regarded for his market commentary and analytical approach to the economy. Earlier this year, he released an investment playbook for 2026, emphasising the need for selective investment rather than a broad-based market rally. He expressed concerns about the labour market, noting that underlying slack is deteriorating. According to Rieder, current layoffs are driven by “efficiency” and cost-cutting rather than cyclical weakness. He highlighted that healthcare employment has been masking weaknesses in other sectors, and excluding healthcare, job growth is actually negative.
Rieder also forecasted 2% GDP growth, primarily driven by capital expenditure in AI, and advocated for buying high-quality fixed income.
If Rieder is appointed, it is expected that long-dated bonds would rally. This could also support the US dollar by removing uncertainties related to the Federal Reserve’s independence, while gold prices might decline.
According to Bostic, a decision on the Fed Chair position should be expected before the end of the month.
Original Source: Adam Button of investinglive.com
