Former Federal Reserve Governor Kevin Warsh [EPA Yonhap News]

An investigation into U.S. Federal Reserve (Fed) Chairman Jerome Powell is shaking up the landscape for the next Fed chair appointment, the Wall Street Journal (WSJ) reported on the 16th (local time).

The WSJ diagnosed, "The Powell investigation is creating new obstacles for Congress (which holds the confirmation power) and raising difficult questions about whether the next chair nominee appears to be someone who can maintain independence."

Due to this situation, Republican Senators Tom Tillis (North Carolina) and Lisa Murkowski (Alaska) have stated that they will oppose any confirmation of Fed chair nominees until this issue is resolved.

The confirmation of the next Fed chair must pass the Senate Banking Committee. Currently, with a 13-11 split between Republicans and Democrats, if Senator Tillis, a member of the Banking Committee, sides with the Democrats, the chairman confirmation bill will be difficult to adopt.

On the 14th, Senator Tillis expressed his view that Kevin Hassett, Chairman of the White House National Economic Council (NEC) and an associate of President Donald Trump, would be an inappropriate candidate for the next chairman, saying, "If you have worked under someone for a while, can you really be independent of them?"

Hassett has been the most likely candidate for the next chairman until recently, but economists have expressed concern that if he is appointed chairman, President Trump's influence over the Fed will strengthen.

Amidst this, the market believes that former Federal Reserve Governor Kevin Warsh, who has been mentioned as a strong candidate after Hassett, is increasingly likely to be nominated as the next Fed chairman.

Chairman of the White House National Economic Council Kevin Hassett [EPA Yonhap News] 

This anticipation is further solidifying as President Trump has hinted at the possibility of Hassett remaining in his White House position.

On the morning of the 16th, before beginning his main speech at an event in the White House concerning investment in rural health, President Trump praised Hassett, who was present, and said, "If you want to know the truth, I actually want to keep you in your current position (White House National Economic Council Chairman)."

He then told White House Chief of Staff Susie Wiles, "We don't want to lose him," and added, "We'll see how everything turns out."

The WSJ reported, citing sources knowledgeable about the matter, that President Trump was deeply impressed by Warsh during an interview last month and was moved by his insights and distinguished appearance.

Some speculate that Christopher Waller, a current Fed governor, and Rick Rieder, Chief Investment Officer of BlackRock's fixed income division, who have not been prominent candidates until now, could emerge as strong candidates due to their lack of close ties with President Trump.

In fact, Senator Tillis commented that Waller's selection as the final chairman candidate "would certainly resolve significant concerns."

Experts believe that if Waller is chosen as the next chairman, it is highly probable that Chairman Powell will also step down from his governor position upon the expiration of his term in May, the WSJ reported, noting that Waller is a respected colleague who has worked with Chairman Powell.

Federal Reserve Governor Christopher Waller [EPA Yonhap News]

Rieder, who was once speculated to have been removed from the list of Fed chairman candidates, has also recently interviewed with President Trump, rekindling the possibility of his selection.

Fox Business News reported on the same day that President Trump interviewed Rieder at the White House this week, with Vice President JD Vance, Treasury Secretary Scott Bessent, and Chief of Staff Wiles in attendance, discussing monetary policy and government debt issues.

The WSJ also reported that Bessent's remarks last week that President Trump would soon interview Rieder were mentioned, and Rieder was spotted at a White House event on the 15th.