Trump may announce a new Federal Reserve chair before Christmas, says Treasury Secretary Scott Bessent. [Photo: X]
Treasury Secretary Scott Bessent said on Tuesday that there is a strong possibility that US President Donald Trump will announce the next Federal Reserve chair before Christmas. His statement comes as the White House continues the selection process to replace Jerome Powell, whose term ends in May.
Bessent said the administration has reached the final stage of interviews. “So we're going to have the last interview in the second round today. We got five very strong candidates,” he told CNBC International.
He added that the timeline depends on President Trump. “But it’s his prerogative, whether it’s before the Christmas holidays or in the new year. But I think things are moving along very well.” Trump recently hinted that he already knows who he wants for the job, but did not name any candidate.
Trump has repeatedly criticised Jerome Powell for not cutting interest rates fast enough.
“Frankly, I would love to get the guy currently in there out right now, but people are holding me back. He has done a terrible job,” Trump said last week.
He told reporters that the White House is considering a mix of “surprising names” and “standard names” for the top job.
“It’s nice to, every once in a while, go politically correct. But we have some great names,” Trump added.
According to reports, these five contenders are being considered for the top Federal Reserve post:
The final round of interviews is underway.
In the same interview, Bessent signalled a shift in how the administration views the Federal Reserve’s role. He said the central bank should step back from the spotlight and return to its earlier, quieter approach.
“I think we’ve got to kind of simplify things. I think it’s time for the Fed just to move back into the background, like it used to do, calm things down and work for the American people.”
A new Fed chair could significantly influence future interest rates, inflation strategy, and US economic policy. Trump has pushed for lower rates, and analysts believe he may pick a candidate who aligns closely with his economic agenda.
Investors are closely watching the process, as the announcement could affect stock markets, bond yields, and global financial stability. Some economists warn that a politically aligned Fed chair could raise concerns about the central bank’s independence.
Announcing the new Fed chief before Christmas would give markets time to react before the new year. It would also help Trump shape the economic narrative heading into 2025, especially as he seeks to deliver on campaign promises of stronger growth and lower borrowing costs.
The final announcement could come at any time, depending on when Trump decides to reveal his choice.
