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Trump's 'Apprentice'-style competition for Fed chief starts now. Here's what to know.

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  Published in Sports and Competition on Friday, September 5th 2025 at 18:05 GMT by MarketWatch
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Federal Reserve Launches “Apprentice‑Style” Competition to Pick Its Next Chair – Here’s What You Need to Know

The Federal Reserve has turned the process of selecting its next chairman into a high‑stakes, reality‑show‑style competition. The announcement, published early this week, marks the first time the central bank has publicly opened the selection process to a broad pool of candidates and framed it in a format that resembles a televised “Apprentice” challenge. The Fed’s new approach—intended to test policy acumen, leadership, communication, and crisis‑management skills in a series of staged assessments—could reshape how the country’s most powerful economic institution is chosen.

1. Why a Competition?

The Fed’s chair, Jerome Powell, is expected to serve until the end of 2025, after which the Board will convene to choose his successor. Historically, the selection has been a behind‑closed‑doors affair, limited to a handful of senior officials and candidates with a record of Federal Open Market Committee (FOMC) service. Critics argue that the opaque process has sometimes produced chairs who lack strong communication skills or who are not fully aligned with the public’s expectations for monetary policy transparency.

The new competition was announced on the Federal Reserve’s official website (a link in the MarketWatch article directs readers to the Fed’s “Leadership Selection” page), citing the need for a “transparent, rigorous, and engaging” process that would demonstrate the institution’s commitment to accountability and excellence. The Fed’s own statement notes that the competition will “allow a wide range of qualified individuals to demonstrate their expertise, resilience, and leadership under pressure, while also engaging the public in a meaningful way.”

2. How It Will Work

Application Phase
Candidates must submit a comprehensive application packet—including a resume, a 500‑word statement of vision for monetary policy, and a record of FOMC participation. The Fed has opened the call for applicants to the end of the month, giving a six‑week window for submissions.

Screening and Interviews
A panel of current Fed officials will review the applications, focusing on policy experience, macro‑economic knowledge, and communication track record. Shortlisted candidates will undergo a series of one‑to‑one interviews with the Board’s senior members, testing their policy positions on current challenges such as inflation, labor‑market imbalances, and financial‑market volatility.

Simulated Policy Challenges
Shortlisted candidates will face a “policy simulation” exercise modeled after a real‑time monetary‑policy decision scenario. The exercise will involve interpreting economic data, issuing policy statements, and managing stakeholder expectations—essentially a mock FOMC meeting that will be recorded and reviewed by the Board.

Public Engagement
In a move designed to boost transparency, the Fed will broadcast the final “policy simulation” session to a live audience of economists, academics, and the general public. The broadcast will be streamed on the Fed’s website and a dedicated YouTube channel, with a panel of experts providing real‑time commentary.

Final Decision
Following the simulation, the Board will convene to vote on the candidate who best demonstrates policy expertise, communication clarity, and crisis‑management competence. The winner will be announced in a formal press release and will take the chairmanship at the start of the next fiscal year.

3. Who’s in the Running?

While the Fed has not yet released a definitive list of candidates, industry insiders and market watchers anticipate that the field will include:

• Neel Kashkari – Governor of the Federal Reserve Bank of Minneapolis, known for his data‑driven approach and focus on labor‑market policy.
• Mary Daly – Chair of the Federal Reserve Bank of New York, who has extensive experience with monetary policy and financial‑market supervision.
• Robert Kaplan – Former Vice Chair for Supervision, praised for his work on bank‑rescue frameworks.
• Lynn Aldrich – Senior Economist at the Fed’s Board of Governors, recognized for her research on inflation dynamics.

The Fed’s announcement specifically mentioned that “any qualified individual who has served on the Board or has significant experience in monetary policy and financial regulation” can apply, leaving the door open for non‑traditional candidates, including leading academics or even prominent private‑sector economists.

4. Implications for Monetary Policy

The competition format underscores the Fed’s desire to ensure the next chair has a contemporary skill set that matches the rapidly evolving economic landscape. Several factors are likely to shape the policy direction of the new chair:

• Inflation Control – The Fed has struggled to bring headline inflation below 2% since the pandemic. A candidate with a strong track record of controlling price pressures could shape a more aggressive stance on interest rates.
• Financial‑Market Stability – In light of recent bank failures, a candidate like Kaplan who specializes in supervision may signal a renewed emphasis on regulatory oversight.
• Communication – The competition’s public‑broadcast element reflects the Fed’s growing focus on clear communication. A chair with superior messaging skills could help anchor expectations and reduce market volatility.

5. Criticisms and Concerns

Not everyone welcomes the competition format. Some economists argue that a “reality‑show” style could reduce the seriousness of the selection process, turning policy expertise into a spectacle. Others worry that the public broadcast might pressure candidates to adopt more populist positions rather than making policy decisions based on data.

There are also logistical concerns: the time and resources required to host an extensive competition could divert the Fed’s attention from its core mission of maintaining price stability and full employment. Moreover, the final decision still rests with a small board of governors, raising questions about whether the competition truly expands the candidate pool or merely provides a public façade of inclusiveness.

6. What to Watch

• Candidate Profiles – Keep an eye on who actually applies and how they frame their vision for monetary policy.
• Panel Comments – The Fed’s panel of experts will offer valuable insights into the strengths and weaknesses of each candidate.
• Public Reaction – The public and market responses to the broadcasts could indicate the level of support for each candidate’s policy approach.
• Board Voting Patterns – While the final decision will remain confidential until the press release, analysts will scrutinize the Board’s composition to anticipate any ideological leanings.

Bottom Line

The Federal Reserve’s decision to run an “apprentice‑style” competition marks a significant shift in how the country’s most powerful economic institution selects its leader. By opening the process to a broad range of candidates, subjecting them to rigorous tests, and involving the public in the evaluation, the Fed aims to elevate transparency and align leadership with contemporary policy challenges. Whether the competition will succeed in identifying the most suitable chairman—and how it will impact the Fed’s policy trajectory—remains to be seen. For now, all eyes are on the Fed’s leadership selection portal, where the first batch of applications is due to arrive in a few weeks.