Top economist says two contenders to replace Fed Chair Powell stand out

Allianz chief economic advisor Mohamed El-Erian said Wednesday that he sees two of the contenders to replace Federal Reserve Chair Jerome Powell rise above the rest of the pack.

El-Erian appeared on FOX Business Network's "The Claman Countdown" on Wednesday and said that BlackRock CIO of global fixed income Rick Rieder and former Fed Governor Kevin Warsh are his preferred picks to replace Powell, whose term as chair expires in May 2026.

"He's a great candidate for chair," El-Erian said of Rieder. "Him and Kevin Warsh have a really good understanding of the markets. They have experience. They're really good economists and they can communicate extremely well."

"I think that they are both equally suited for the job and I think they both would do a great job," he added.

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El-Erian said that the presence of Rieder, Warsh and Fed Governor Christopher Waller in the Trump administration's list of 11 potential candidates for Federal Reserve chair shows the central bank will have strong leadership after Powell's term ends next year.

"The good news is you have among the 11, you have quite a few that are really good candidates," he explained. "It's not as if we will go from Chair Powell to something much worse."

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BlackRock's Rieder also appeared on "The Claman Countdown" on Wednesday and was asked by host Liz Claman about reports he's under consideration as a Fed chair nominee.

"Honestly, when I first heard it, I thought it'd be the greatest honor of my life," Rieder said. "I mean, to actually be considered in a position like that and think about the responsibility, and quite frankly, what I thought about is the ability – and I think why serving your country is such a powerful dynamic – is the ability to help people through monetary policy, through economic transmission, is really powerful."

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Rieder also said that whoever is appointed as the Fed chair will need to lower interest rates next year.

"I've talked about what I think in terms of interest rates and whoever the next Fed chair is, listen, I do believe you have to get that rate down," he added.

When asked by Claman whether he would accept the nomination as Fed chair if such an offer were to be extended, Rieder shifted the focus to his work for BlackRock.

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"I have a full-time role in trying to generate returns for clients," Rieder said. "I'm working hard and, you know, it's been a good environment to – I know I've said it before – it's a good environment for me to be an investor and so I'm doing my job."