Financial markets and policymakers are closely watching remarks from Rick Rieder, a leading candidate to succeed Federal Reserve Chair Jerome Powell. Rieder says Powell’s recent statements were “considerably more hawkish than expected”, signaling a potential pause in future interest rate cuts.
Rieder, BlackRock’s chief investment officer for global fixed income, noted that while the Fed’s recent quarter-point rate cut to a range of 3.75% to 4% was in line with a slowing labor market, Powell’s post-meeting comments suggested another cut in December is not guaranteed. Analysts interpret this as a signal that the Fed could hold rates steady into the new year.
“Potential Fed Chair Candidates” with images of Rieder, Powell, Hassett, Waller, and Warsh.
Rieder is one of five names on Treasury Secretary Scott Bessent’s short list of potential Fed chair successors. The final slate is expected to go to President Donald Trump after Thanksgiving, with a decision by year’s end. Trump has repeatedly emphasized his preference for a Fed chair who will pursue sharply lower rates.
In his statement, Rieder highlighted a slowing labor market, productivity gains, and the need for improved housing affordability and velocity. He suggested that the Fed’s approach of lowering rates aligns with these economic realities and anticipates a continuation of this trend in future Fed meetings.
Graphic showing online market probabilities for Fed chair picks — Rieder at 8–9%, Hassett leading.
Market watchers currently see National Economic Council Director Kevin Hassett as the frontrunner for Powell’s position, with Fed Governor Christopher Waller and former Fed Governor Kevin Warsh also in contention. Rieder’s odds are around 8 to 9 percent, while Fed Governor Michelle Bowman also remains on the shortlist.
As the Fed navigates slowing economic growth and market expectations, all eyes will remain on Jerome Powell and potential successors like Rick Rieder — a decision that could shape U.S. monetary policy for years to come.
