Bessent lists Fed chair finalists, Trump says decision by end of year
Treasury Secretary Scott Bessent has revealed that the search for a replacement for Federal Reserve Chair Jerome Powell has been narrowed down to five candidates. President Donald Trump has indicated that the new chair is likely to be announced by the end of the year.
The five finalists for the position are current Fed Governors Christopher Waller and Michelle Bowman, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock executive Rick Rieder. These names had been previously reported by CNBC earlier this month.
Bessent, who was rumored to be a top candidate himself, mentioned that he has been conducting interviews and plans to do one more round before presenting a final selection to President Trump after the Thanksgiving holiday.
President Trump, speaking to reporters on Air Force One, expressed his intention to name Powell’s replacement by the end of the year. Powell’s term is set to expire in May, after which he can either step down from the Fed entirely or continue serving as a governor until 2028.
The Federal Open Market Committee is scheduled to meet this week, with an interest rate decision expected on Wednesday. Market expectations are leaning towards a quarter percentage point cut in the benchmark overnight borrowing rate, following a similar cut in September.
President Trump currently has three appointees on the seven-member board of governors, including Waller, Bowman, and Stephen Miran. Miran, who is filling an unexpired term until January, is not expected to be reappointed. If Powell chooses to leave the Fed, Trump would have four appointees on the board.
Despite his efforts, Trump has been unable to remove Governor Lisa Cook from the board. Along with the governors, a rotating group of five regional presidents also participate in the FOMC meetings as voters.
The decision on Powell’s replacement and the future direction of the Federal Reserve will have significant implications for the economy and financial markets. Stay tuned for updates as the selection process unfolds.
