Bessent says there’s a ‘very good chance’ Trump names new Fed chair before Christmas
Treasury Secretary Scott Bessent said Tuesday he expects President Donald Trump to make a decision on the new Federal Reserve chairman before the holiday season.
Bessent, who is leading the search for current Chairman Jerome Powell’s successor, said in an interview with CNBC that he still has an interview and is not ready to speculate on who might get the job.
“I think there’s a very good chance the president will make an announcement before Christmas,” he said. “But whether it’s before the Christmas holidays or in the new year, that’s his prerogative. But I think things are going very well.”
Trump has been a harsh critic of the Fed and recently said he would “love” to fire Powell and encouraged Bessent to “work on” the presidency to lower the central bank’s key interest rate.
Trump even joked, “If you don’t fix the problem right away, I’m going to fire you,” referring to Bessent.
“If you were in the room, he was joking,” Bessent said. “We’ve gotten to the point where monetary policy has become very complex, and it’s about more than just lowering interest rates.”
Powell’s term ends in May 2026, and before then he is expected to be preoccupied with the abrupt split of the Federal Open Market Committee, which has been divided over the need for further cuts. Markets largely expect the FOMC to approve its third consecutive rate cut at its December meeting, according to a recent statement from New York Fed President John Williams.
Meanwhile, Bessent continues to meet with presidential candidates. The finalists are believed to include National Economic Council Director Kevin Hassett, former Governor Kevin Warsh, BlackRock executive Rick Rieder and current Fed Governors Christopher Waller and Michelle Bowman.
Bessent said he envisions a different role for the Fed than the dominant position it has had over the economy and financial markets since the financial crisis.
“I think we need to simplify things a little bit,” he said. “I think it’s time for the Fed to step into the background, calm things down and work for the American people, as they have done in the past.”
