Bessent says Trump’s pick for the next Fed chair could happen next week

President Donald Trump is on the brink of selecting the next chair of the Federal Reserve, according to Treasury Secretary Scott Bessent. The decision is imminent, with Trump narrowing down the field to four candidates to replace current Chair Jerome Powell.

In an interview at the World Economic Forum in Davos, Switzerland, Bessent revealed that the president is expected to make a decision as early as next week. The selection process began in September, with 11 strong candidates initially considered. Now, the final four contenders have all met personally with Trump, and the ultimate choice will be his.

While the names of the finalists were not disclosed by Bessent, previous reports have identified a group of five potential candidates, including Kevin Hassett, Kevin Warsh, Christopher Waller, Michelle Bowman, and Rick Rieder. Speculation from prediction markets suggests that Hassett, Warsh, and Waller are the frontrunners, with Rieder also garnering interest.

The scrutiny on Powell’s leadership of the Fed has intensified in recent months, with Trump and other White House officials criticizing his handling of monetary policy and interest rates. The Justice Department’s recent subpoena of Powell in connection to a renovation project at the Fed headquarters has added to the tension.

Despite the criticisms, Bessent emphasized the importance of the Fed’s independence in setting monetary policy. He highlighted ethical issues that have led to several governors and presidents resigning during Powell’s tenure, underscoring the need for accountability within the institution.

While Powell’s current term as chair expires in May, he has the option to continue serving as a governor until 2028. The decision on his successor is eagerly awaited, as it will have significant implications for the direction of monetary policy in the coming years.

The selection of the next Fed chair is a key decision that will shape the economic landscape in the United States. As Trump prepares to announce his choice, the financial markets and policymakers will be closely monitoring the outcome to gauge the future direction of monetary policy.