Key Takeaways
- President Donald Trump is expected to announce his nominee for the next Federal Reserve chair before Christmas, according to Treasury Secretary Scott Bessent.
- National Economic Council Director Kevin Hassett has reportedly emerged as the front-runner for the top post at the central bank.
- The selection process is led by Bessent, who is finalizing interviews for a successor to current Chair Jerome Powell.
- This potential leadership change follows President Trump’s repeated public criticism of Powell and the Fed’s monetary policy.
Washington D.C. – A decision on the next leader of the Federal Reserve could come before the holiday season, Treasury Secretary Scott Bessent announced Tuesday. In a television interview, Bessent revealed that President Donald Trump has a “very good chance” of naming his choice to succeed current Chair Jerome Powell before Christmas.
“I think there’s a very good chance that the president will make an announcement before Christmas,” Bessent said. “But it’s his prerogative… I think things are moving along very well.”
Kevin Hassett Emerges as Top Candidate
While Bessent, who is spearheading the search, noted he has one final interview to conduct, reports indicate a leading candidate has already surfaced. According to Bloomberg News, National Economic Council Director Kevin Hassett is the front-runner for the influential position.
Hassett is one of several names being considered for the job. The short list is also believed to include former Fed Governor Kevin Warsh, BlackRock executive Rick Rieder, and current Fed Governors Christopher Waller and Michelle Bowman. The White House has not yet commented on the speculation.
Trump’s Push for a Policy Shift
The search for a new chair comes amid President Trump’s ongoing criticism of the central bank’s direction under Jerome Powell, whose term expires in May 2026. Trump has been a vocal opponent of the Fed’s interest rate policies and recently reiterated that he would “love” to replace Powell.
The president has publicly encouraged Bessent to pressure the Fed to lower rates, even joking that if the Treasury Secretary didn’t “get it fixed fast, I’m gonna fire your ass.”
Bessent downplayed the comment, stating, “If you were in the room, he was joking.” He added, “We’ve gotten to this point where monetary policy has gotten very complicated, and it’s more than just cutting rates.”
A New Vision for the Central Bank
The Treasury Secretary also offered a glimpse into the administration’s desired future for the institution. Bessent said he envisions a less dominant role for the Fed, which has been at the forefront of economic policy since the 2008 financial crisis.
“I think we’ve got to kind of simplify things,” he explained. “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.” The upcoming nomination will be a critical indicator of the future direction of U.S. monetary policy.