So the Federal Reserve is looking ahead. A few notable contenders have already emerged as potential frontrunners for its soon-to-be vacant top leadership post. The highlighted three are Kevin Hassett, Rick Rieder, and Christopher Waller. Each one of them was chosen for their distinct qualifications and experiences that would strongly influence the future direction of U.S. monetary policy.
Kevin Hassett is a veteran conservative economist. He was the president’s chief policy adviser during Donald Trump’s successful presidential campaign and now steers the National Economic Council. At 63 years old, Hassett is a lot of things. He had previously been chair of the White House Council of Economic Advisers for Trump’s first term. He’s been one of the most vocal defenders of Trump’s economic policies, and he’s sought to downplay any signs that the U.S. economy is weakening.
Hassett’s time has been focused on that empirical data to the core. He stated, “The way you’ve got to drive interest-rate movements is with consensus based on the facts and the data.” His approach is a bold and admirable commitment to data-driven economic policy. He courageously cuts against the criticism for allegedly being too optimistic about our economic headwinds. Moreover, Hassett has repeatedly raised concerns regarding perceived bias at the Bureau of Labor Statistics, suggesting a potential conflict between political narratives and economic realities.
Rick Rieder is one of the most important players in the financial world. He is currently chief investment officer – global fixed income at BlackRock Inc. At 55 years old, Rieder is in charge of more than $2.4 trillion in assets. This remarkable achievement has landed him at the center of the financial markets. Rieder comes with a remarkable pedigree, with more than 30 years working on Wall Street. He’d previously worked at Lehman Brothers and even started his own hedge fund before signing on with BlackRock.
Rieder’s extensive experience in investment management provides him with insights into market dynamics that could benefit the Federal Reserve’s policy-making process. His record as a savvy navigator of complicated financial landscapes makes him an ideal candidate for leadership within the typically insular institution.
Christopher Waller featured prominently in the trio of candidates. A scholar-in-residence at the right-leaning Hoover Institution, Waller brings a serious academic background to discussions about economic policy. As a bonus, he sits on the board of United Parcel Service, UPS, adding even more diversification to his professional background. Waller’s unique role straddling the academic and corporate worlds equips him to connect abstract theoretical economic principles to real-world practice.
Those political dynamics creating the most tumultuous waters for selection of Fed’s leadership are exacerbated by Trump’s ominous and oft repeated threats about interest rates. He stated, “He thinks you have to lower interest rates,” hinting at his preferences for monetary policy direction. Trump’s comment highlights the ugly extent to which politics will drive, or should drive, the selection process.