Bessent Plans to Present Fed Chair Candidates to Trump After Thanksgiving
U.S. Treasury Secretary Scott Bessent announced on Wednesday that he plans to present three or four candidates for the next Federal Reserve chair to President Donald Trump after the Thanksgiving holiday in late November.
Speaking at a CNBC event during the International Monetary Fund (IMF) and World Bank annual meetings in Washington, Bessent said he has narrowed the list of potential successors to Jerome Powell from eleven candidates down to five. Powell’s current term as Fed Chair expires in May next year.
A Decision with Global Significance
The decision is being closely monitored worldwide, as it could expand Trump’s influence over the Federal Reserve, a central bank known for its independence in shaping U.S. monetary policy.
Bessent noted that the process has been slightly delayed due to Trump’s upcoming trip to Asia for regional summits. “We’ll likely move forward in December,” he said, adding that the president will interview several finalists before making his decision.
According to Bessent, Trump will take broad input from advisors and experts before choosing Powell’s replacement.
Interest Rates and Key Criteria
When asked whether a preference for lower interest rates was among the criteria, Bessent replied that one of the main factors is to have “an open mind.”
President Trump has long criticized Jerome Powell and the Fed for not cutting interest rates as aggressively as he would like. In September, the Federal Reserve reduced its benchmark short-term rate by 0.25 percentage points, to a range between 4.00% and 4.25%, amid concerns about a slowing labor market.
However, Trump has stated that he believes rates should be as low as 1% and has even threatened to remove Powell for not following his monetary policy preferences. Earlier this year, he also attempted to fire Fed Governor Lisa Cook, citing unproven allegations of mortgage fraud. Cook, who denies the claims, has filed a lawsuit to keep her position, with the Supreme Court expected to hear the case in January.
Powell’s Successor Process May Extend Into 2026
Bessent’s comments indicate that the process to replace Jerome Powell could extend well into next year, especially with the Senate confirmation required for any nominee.
Powell, first appointed to the Federal Reserve Board by Barack Obama and later promoted to Chair by Donald Trump in 2018, has had a strained relationship with Trump in recent years.
Trump has already appointed three of the seven current Fed Board members, including Stephen Miran, who recently joined after Adriana Kugler’s departure in August. Miran’s temporary term expires at the end of January, which could influence how quickly Bessent proceeds with selecting a successor.
Possible Candidates Under Consideration
Reports from CNBC suggest that two of the five finalists are already members of the board — Michelle Bowman and Christopher Waller. Choosing one of them could open the door for Miran’s reappointment to a full 14-year term.
Other rumored contenders include Kevin Hassett, Kevin Warsh, and Rick Rieder, the Chief Investment Officer for Fixed Income at BlackRock. Selecting one of these would likely require a vacant board seat, with Miran’s being the most immediate opportunity.
Meanwhile, Jerome Powell has not yet indicated whether he plans to remain on the board after his term as chair ends in May. His current board membership runs through January 2028, though historically, former chairs rarely stay on after stepping down.
