Treasury Secretary Scott Bessent says President Trump is expected to name Jerome Powell’s replacement at the Federal Reserve by Christmas, with a short list of five finalists circulating and the president reportedly keeping one final interview on his schedule.
Scott Bessent told reporters that the selection process is moving and that a decision could come before the holidays. The timing matters because the Fed chair shapes interest-rate policy and market expectations, and the choice will signal whether Washington wants a monetary regime that prioritizes growth and market confidence.
Kevin Hassett is widely viewed as the frontrunner, though sources say the president still has one interview left to conduct. The field also includes former Fed Governor Kevin Warsh, current Fed Governors Christopher Waller and Michelle Bowman, and Rick Rieder, BlackRock’s chief investment officer for global fixed income.
“I think there’s a very good chance that the president will make an announcement before Christmas,” Bessent said. “But it’s [Trump’s] prerogative, whether it’s before the Christmas holidays or in the new year. But I think things are moving along very well.”
President Trump has been openly critical of Jerome Powell, assigning him the mocking nickname: “Too Late Powell.” That jab captures a larger disagreement: Trump wants a Fed that acts aggressively to support growth, while Powell’s tenure was marked by cautious tightening that critics say choked off momentum at key moments.
From a Republican perspective, the Fed chair should be judged on whether monetary policy complements pro-growth tax and regulatory moves and helps sustain a strong labor market. Picking someone who understands how rate policy affects hiring, investment, and consumer confidence is squarely in line with those priorities.
The new chair will face immediate tests: how quickly to cut rates if the economy slows, how to communicate with markets, and how to balance inflation concerns against the need for growth. A chair aligned with the president’s view would likely prioritize lower rates and clearer, growth-friendly messaging to restore confidence for businesses and investors.
Senate confirmation will be the next hurdle, and politics will matter. Republicans can argue for a nominee who will deliver predictable policy that supports jobs and investment, while Democrats will likely emphasize Fed independence and inflation risks. Those debates will shape both the hearings and the markets’ reaction to the nomination.
For the White House, the choice is both practical and symbolic. A chair whose outlook mirrors the administration’s on rates and growth signals a broader policy alignment that extends beyond tariffs and tax cuts. Markets pay attention to signals as much as to actual votes, so clarity from the Fed can itself boost the economic narrative.
The final selection will also affect global bond markets and foreign central banks that watch the Fed for cues. A pivot toward a more accommodative stance could ease dollar strength and influence capital flows, while a hawkish pick would keep borrowing costs elevated and pressure asset prices.
Whoever is chosen will inherit Powell’s record and the political baggage that comes with it, but the appointment also offers a reset. If the new chair is confirmed and follows a pro-growth approach, it could realign policy debates in Washington and on Wall Street in ways that favor faster economic expansion.
Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.
