Treasury Secretary Scott Bessent said on Tuesday there was a very good chance the US president would announce a new chairman of the Federal Reserve before Christmas.
Bessent’s remarks come days after Donald Trump said he thought he already knew his choice for the next Fed chair.
Current Fed Chair Jerome Powell’s term ends in May.
In an interview with CNBC International, Bessent said: “So today we will have the last interview in the second round. We have five very strong candidates.”
“But it’s his prerogative whether it’s before Christmas or in the new year. But I think things are moving very well,” Bessent added.
The US Treasury Secretary also envisions a different role for the Fed.
“I think we need to simplify things somehow. I think it’s time for the Fed to go back into the background, as it has been doing, to calm things down and work for the American people.”
Last week, without elaborating, while answering a question during an Oval Office appearance, Trump told reporters he thought he already knew his choice and had talked to different people.
He added that they have some surprising names and we have some standard names that everyone talks about. “We can go the standard route. It’s nice to be politically correct once in a while. But we have some great names.”
Trump also criticized Powell for not cutting interest rates faster.
“Honestly, I’d like to get the guy that’s there right now, but people are holding me back. He’s done a terrible job.”
Five contenders for the Fed’s top post:
Kevin Hassett, White House economic adviser
Kevin Warsh, former Fed governor
Christopher Waller, current Fed Governor
Michelle Bowman, Fed Vice Chair for Supervision
Rick Rieder, CEO of BlackRock
