Bessent says Trump’s pick for the next Fed chair could happen next week
After months of speculation and political intrigue, President Donald Trump is close to nominating the next chairman of the Federal Reserve, Treasury Secretary Scott Bessent said Tuesday.
The President has narrowed the field to four candidates to replace current Chairman Jerome Powell and a decision will be coming soon, Bessent said in an interview with CNBC at the World Economic Forum in Davos, Switzerland.
“My guess is that the president will come to a decision as soon as maybe next week,” he said during the “Squawk Box” interview. “We had important discussions on this issue. We carried out a process that started in September; 11 very strong candidates. We are now left with four candidates. The president has personally met with all of them and this will be his decision.”
Bessent did not name the four finalists, but previous comments noted a field of five that included National Economic Council director Kevin Hassett, former Fed Governor Kevin Warsh, current Governors Christopher Waller and Michelle Bowman, and BlackRock’s chief fixed income strategist Rick Rieder.
Although prediction markets focused on Hassett, Warsh and Waller, White House officials said Rieder also met with Trump and received more attention. Recently, Warsh came out on top in Kalshi following Trump’s comments that he would prefer Hassett to remain in his current role, while Rieder and Waller follow.
Bessent conducted the screening process but did not express a personal preference.
Trump and White House officials, including the Treasury secretary, have regularly criticized Powell for both his handling of monetary policy and setting interest rates, and for the way he runs the agency generally. Recent developments have seen the Department of Justice subpoena Powell regarding the renovation project at the Fed headquarters.
Trump nominated Powell for the post in 2017, and former President Joe Biden reappointed him.
“Look, I think the monetary policy independence of the Fed is very important. I think a lot of the problems with independence are created by other things that are going on,” Bessent said. “Under Chairman Powell’s watch, we will see four to six governors and presidents having to resign due to ethical issues. That’s out of 19. If this were at a Wall Street firm, the CEO would be removed.”
Multiple Fed officials, most recently Chairman Adriana Kugler, have either retired or resigned after running afoul of investment-related ethics rules.
“Independence does not mean lack of responsibility. The Fed has a special obligation to the American people because it affects their lives,” Bessent said.
Although Powell’s term as president will end in May, he will have the option to remain governor until 2028.
