Rick Reader, the investment director for global fixed income at BlackRock, has significantly increased his chances of leading the U.S. Federal Reserve. According to the forecasting platform Polymarket, the probability of his appointment has reached 54%, whereas just a week ago this figure was only 6%.
This is reported by Business • Media
Trump Prepares to Announce Fed Chair Candidate
U.S. President Donald Trump is expected to officially present his candidate for the position of Fed Chair in the near future. This process is accompanied by active attention from the U.S. Treasury Department, which is consulting with major investors regarding Reader’s candidacy. Former Fed Board member Kevin Warsh, who is also considered a potential contender, has confirmed the existence of such contacts.
“U.S. President Donald Trump has repeatedly clashed with the current head of the regulator, Jerome Powell. At the same time, the politician stated that he would announce his choice ‘in the not-too-distant future.'”
Changing Favorites and the Confirmation Process
Until recently, the main candidate for the position of Fed Chair was White House economic advisor Kevin Hassett. However, his chances have diminished following criticism from investors who emphasize the importance of maintaining the Fed’s independence and warn against appointing a candidate close to the president.
Rick Reader has been with BlackRock since 2009 and is responsible for bond management strategies with total assets exceeding $2.4 trillion. Prior to joining BlackRock, he worked for two decades at Lehman Brothers.
According to procedures, the nomination for the position of Fed Chair will first be reviewed by the U.S. Senate Banking Committee, where Republicans hold a slight majority (13 to 11). After that, the entire Senate will make the final decision.
It was previously reported that current Fed Chair Jerome Powell had mentioned pressure from the Justice Department and blamed Donald Trump for it. At the same time, the U.S. president emphasized that he does not intend to seek the resignation of the Fed Chair, despite the Justice Department’s investigation.
