US Treasury chief Bessent lists 5 finalists for next Fed chair, as Trump to decide before year's end

ISTANBUL

US Treasury Secretary Scott Bessent announced late Monday that five final candidates are being considered for the next chair of the US Federal Reserve, as President Donald Trump is expected to make a decision before the end of the year.

Bessent told reporters aboard Air Force One that the finalists include National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, BlackRock executive Rick Rieder, and current Fed Governors Christopher Waller and Michelle Bowman.

Bessent, who was also thought to be a contender for the job, said he has been conducting interviews and anticipates doing one more round before handing Trump a "good slate" following the Thanksgiving break.

Also speaking to reporters aboard Air Force One on Monday, Trump stated that he expects to name a replacement by the year's end.

The current chair, Jerome Powell, has a term running through May. After that, Powell has the option of remaining in his position as governor until 2028 or leaving the Fed completely.

The Fed will announce its interest rate decision on Wednesday. The markets widely expect a 25-basis-point rate cut, as inflation came in below estimates and the labor market has been slowing in recent weeks before the data blackout caused by the government shutdown.

Christopher Waller and Michelle Bowman are Trump’s second and third selections to the seven-member Board of Governors. Stephen Miran, who is serving an unexpired term that ends in January, is also on the board. Miran is not anticipated to be reappointed as the head of the Council of Economic Advisers, a position that was affirmed in September. During his candidacy, he urged the Federal Reserve’s policy committee to take stronger steps to stimulate the economy, such as cutting interest rates more quickly.

If Jerome Powell were to leave the Fed, Trump would then have appointed four of the seven members of the Board of Governors, giving him greater influence over Fed decisions. Trump's attempt to remove Governor Lisa Cook from the board has so far failed. At the Fed's monetary policy meeting, five regional presidents alternate with the governors as voters.