Em statements to journalists aboard Air Force One, Scott Bessent mentioned that the candidates for the Federal Reserve leadership include Governors Christopher Waller and Michelle Bowman, former Governor Kevin Warsh, White House National Economic Council Director Kevin Hassett, and BlackRock executive Rick Riede.
The replacement will be announced later this year, although current Chairman Jerome Powell is expected to remain in his position until May 2026, according to the U.S. Treasury Secretary.
“We can have it by the end of the year. We want to end the ‘Too late’ as quickly as possible. We want to end the ‘Too late’,” said U.S. President Donald Trump, beside Bessent, referring to the derogatory nickname he uses to express his dissatisfaction with Powell’s pace in reducing interest rates.
Bessent has been narrowing the list of potential candidates for Fed leadership after his own name was once considered and subsequently excluded by President Trump, who prefers to continue having him in the federal government.
The Treasury Secretary reiterated plans to conduct another round of interviews and present a “good list” to President Donald Trump after the Thanksgiving holiday.
The next chairman will likely be appointed for a four-year term as a Fed governor.
Until the replacement occurs, the Trump administration appears intent on continuing its pressure on the U.S. central bank to force a reduction in interest rates.
Last September, the Fed reduced interest rates by 0.25 percentage points to a range of 4% to 4.25%.
At the upcoming meeting scheduled for Tuesday and Wednesday, analysts anticipate another 0.25 percentage point cut in the benchmark rates, despite the lack of updated inflation and unemployment data due to the U.S. government shutdown.
