Daijiworld Media Network - Washington
Washington, Nov 26: Treasury Secretary Scott Bessent has indicated that President Donald Trump may reveal the next chair of the US Federal Reserve before Christmas, signalling that the search for Jerome Powell’s successor is entering its final stage.
In an interview with CNBC on Tuesday, Bessent — who is overseeing the selection process — said he has one final interview left before submitting his recommendations to the President. He refused to comment on who might be chosen.
“I think there’s a very good chance that the President will make an announcement before Christmas,” Bessent said. “But it’s his prerogative whether it’s before the holidays or in the new year. Things are moving along very well.”
President Trump has frequently criticised the Federal Reserve, especially its handling of interest rates. His dissatisfaction with chair Jerome Powell has been public, and according to Bessent, Trump even joked about wanting to fire the Fed chief, urging him to guide the central bank toward lower rates. Bessent dismissed the remark as light-hearted, noting that monetary policy today is far more complex than simply cutting interest rates.
Although Powell’s term ends only in May 2026, the debate over his successor has intensified as divisions within the Federal Open Market Committee (FOMC) grow over the direction of interest rates. Markets currently expect a third straight rate cut when the FOMC meets in December, especially after New York Fed President John Williams reinforced the case.
Bessent confirmed that the administration is still meeting candidates. Those under consideration are believed to include National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, BlackRock executive Rick Rieder, current Fed Governor Christopher Waller, and Fed Governor Michelle Bowman. A Bloomberg report has suggested that Hassett is the current favourite, but the White House has denied any final decision.
“Until an announcement is made by President Trump, discussion about Fed nominations is speculation,” White House spokesman Kush Desai told CNBC.
Bessent also hinted that a wider rethink of the Federal Reserve’s role may be underway. He said the central bank has exerted enormous influence on the economy since the 2008 financial crisis, and suggested it may be time for the Fed to return to a quieter, stabilising presence.
“I think we’ve got to simplify things,” he said. “It’s time for the Fed to move back into the background, calm things down, and work for the American people.”