Treasury secretary completes interviews for next Fed chair, sends shortlist of five to Trump

WASHINGTON — Treasury Secretary Scott Bessent has completed interviews for the next Federal Reserve chair, narrowing the candidates to five finalists who will now go to President Donald Trump for final selection, Bessent said Tuesday.

The process, which Bessent has led since Labor Day, focused on candidates who are "forward-looking, not backward-looking on regulation," he told CNBC. Trump is expected to announce his choice before Christmas, though the current chair, Jerome Powell, does not complete his term until May 2026.

The shortlist includes Fed Gov. Christopher Waller, who met with Bessent about 10 days ago and described the discussion as "straight about economics" and nonpolitical; White House National Economic Council Director Kevin Hassett, a longtime Trump economic adviser who has advocated for lower rates; former Fed Gov. Kevin Warsh, who previously served on the board from 2006 to 2011; Fed Vice Chair for Supervision Michelle Bowman; and BlackRock fixed-income chief Rick Rieder.

Waller, considered the most veteran academic among the group, has repeatedly called for rate cuts that align in part with Trump's demands while stressing the Fed's independence. Hassett, who held senior economic roles in Trump's first term and advised on the 2024 campaign, has been a staunch defender of the president's agenda. Warsh, once a top contender for Treasury secretary, was among those considered to replace Janet Yellen in 2018 before Trump selected Powell.

Prediction markets have recently shown a tight race between Hassett and Waller as frontrunners.

Bessent, a former hedge fund executive, said the interviews emphasized how candidates would manage the Fed's "very complicated operation" amid Trump's push for looser monetary policy and criticism of Powell for not cutting rates more aggressively.

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