President Donald Trump is nearing a decision on the next chair of the Federal Reserve, as confirmed by Treasury Secretary Scott Bessent during an interview at the World Economic Forum in Davos, Switzerland. Bessent stated that the president has narrowed the list of candidates from 11 to four, and that an announcement is expected as soon as next week.
Bessent mentioned that President Trump has personally met with all final candidates, though he did not disclose their names. Speculation suggests that the finalists may include National Economic Council director Kevin Hassett, former Fed Governor Kevin Warsh, and current Fed governors Christopher Waller and Michelle Bowman. BlackRock’s chief fixed income strategist, Rick Rieder, is also believed to be under consideration. Prediction markets indicate Warsh as the front-runner, while Hassett’s preference may be to remain in his current position.
The screening process has underscored Trump’s ongoing frustration with Powell’s handling of monetary policy and interest rates, as well as issues surrounding the institution’s governance. Powell, who was nominated by Trump in 2017 and reappointed by former President Joe Biden, is currently facing scrutiny following a Justice Department subpoena related to renovations at the Federal Reserve headquarters.
Bessent emphasized the importance of maintaining the Fed’s independence while ensuring accountability. He pointed to resignations of various Fed officials due to ethical lapses, suggesting that similar issues in a private sector company would necessitate leadership changes. Although Powell’s term as chair ends in May, he has the option to continue as a governor until 2028.
Why this story matters
Key takeaway
Opposing viewpoint
