New US Fed Chair Before Christmas? Here's What Treasury Secretary Scott Bessent Said
Bessent also hinted at a broader reassessment of the Fed’s place within US economic governance.
Treasury Secretary Scott Bessent has suggested that President Donald Trump may name the next chair of the US Federal Reserve before Christmas, signalling that the search for Jerome Powell’s successor is nearing its conclusion.
Speaking in a CNBC interview on Tuesday, Bessent, who is leading the selection process, said he still had one interview left before making his recommendations to the President. He declined to speculate on who might ultimately be chosen.
“I think there’s a very good chance that the president will make an announcement before Christmas,” he said. “But it’s his prerogative, whether it’s before the Christmas holidays or in the new year. But I think things are moving along very well.”
Tensions Over Fed Policy
President Trump has been openly critical of the Federal Reserve, particularly its approach to interest rates. He has repeatedly expressed frustration with Powell, even telling Bessent he’d “love” to fire the Fed chair and urging him to “work on” steering the central bank toward lower rates.
The President also made headlines with a pointed, though, Bessent insists, joking, remark: “If you don’t get it fixed fast, I’m gonna fire your ass.”
Bessent downplayed the comment: “If you were in the room, he was joking. We’ve gotten to this point where monetary policy has gotten very complicated, and it’s more than just cutting rates.”
Powell’s term is not set to expire until May 2026, but the political spotlight has intensified as the Federal Open Market Committee (FOMC) grows increasingly divided over the path of interest rates. Markets currently expect a third consecutive rate cut at the FOMC’s December meeting, a sentiment reinforced by recent remarks from New York Fed President John Williams.
A Shortlist of Finalists Emerges
Bessent confirmed that interviews continue as the administration evaluates its finalists. The group is believed to include:
Kevin Hassett, Director of the National Economic Council
Kevin Warsh, former Fed Governor
Rick Rieder, BlackRock executive
Christopher Waller, current Fed Governor
Michelle Bowman, current Fed Governor
According to a Bloomberg report citing insiders, Hassett is considered the current front-runner. However, the White House has pushed back on claims that the President has made up his mind.
“Until an announcement is made by President Trump, discussion about Fed nominations is speculation,” White House spokesman Kush Desai told CNBC.
A Shift in the Fed’s Role?
Bessent also hinted at a broader reassessment of the Fed’s place within US economic governance. He argued that the central bank has held an outsized and often overwhelming influence on markets and the economy since the 2008 financial crisis.
“I think we’ve got to kind of simplify things,” he said. “I think it’s time for the Fed just to move back into the background, like it used to do, calm things down and work for the American people.”
