US Treasury Secretary Scott Bessent announced on Wednesday that he plans to present a narrowed-down list of three or four candidates for the Federal Reserve chair position to President Donald Trump after Thanksgiving.
The shortlist comes after a series of intense interviews with potential candidates, and Trump will have the final say in selecting a new leader for the US central bank.
Bessent, speaking at a CNBC event on the sidelines of the International Monetary Fund and World Bank annual meetings in Washington, said Trump would take input from a wide range of advisers before making a decision.
“At the end of the day, he’ll take input like he always does from dozens, hundreds of people and then make a decision,” Bessent explained.
When asked if the desire to lower interest rates would be a key criterion for the next Fed chair, Bessent added that “having an open mind” would be crucial.
President Trump has frequently criticised current Fed Chair Jerome Powell for not cutting rates fast enough to suit his economic policies. Powell’s term is set to end in May of next year.
Final candidates narrowed down
Following an extensive interview process, Bessent has narrowed the pool of candidates for Fed chair down to five, including two sitting Federal Reserve officials, Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller.
The remaining finalists include Kevin Hassett, former head of the National Economic Council; ex-Fed Governor Kevin Warsh; and BlackRock’s Chief Investment Officer for Fixed Income, Rick Rieder.
Bessent intends to hold another round of interviews before submitting the final list to Trump, who will make the ultimate selection.
Treasury officials noted that it is likely the chosen candidate will first be nominated to a Fed governor seat before being nominated as chair.
The process could extend beyond Thanksgiving due to scheduling delays, including Bessent’s upcoming international trip with Trump.
The selected candidate is expected to be nominated as soon as January. However, the nominee may first be appointed to a 14-year governor’s term rather than directly to the chair, which could create a more stable leadership position at the Fed.
The final candidates on the list, including Warsh, Hassett, and Waller, have already been publicly mentioned by Trump as potential nominees, while Bowman and Rieder are new names to be considered by the White House.
