There is “a very good chance” that President Trump names a replacement for Fed Chair Jerome Powell by Christmas, Treasury Secretary Scott Bessent said Tuesday.
Bessent, who has been leading search efforts for a new Fed leader, told CNBC he still has one interview left and is not ready to speculate on who might succeed Powell, whom Trump has said he’d “love” to fire.
“I think there’s a very good chance that the president will make an announcement before Christmas,” said the Treasury secretary.
“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.”
Finalists for the role reportedly include National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, current Fed Governors Christopher Waller and Michelle Bowman, and Rick Rieder, chief investment officer of global fixed income at BlackRock.
Trump has been eager to replace Powell – whose term expires in May 2026 – after months of blasting the Fed chairman for not slashing rates quickly enough.
Last week at the US-Saudi Investment Forum in Washington, DC, Trump said Powell has “mental problems” and he would love to “fire his ass,” but Bessent is holding him back.
As the audience of investors, tech bros and foreign leaders laughed, Trump urged Bessent – who was in the crowd – to “work on this guy,” adding: “The rates are too high, Scott. And if you don’t get it fixed fast, I’m going to fire your ass, okay?”
“If you were in the room, he was joking,” Bessent told CNBC on Tuesday. “We’ve gotten to this point where monetary policy has gotten very complicated, and it’s more than just cutting rates.”
Fed officials have been split on whether to cut interest rates further after two consecutive quarter-point cuts at the September and October meetings, down to the 3.75% to 4% range.
Markets rebounded after New York Fed President John Williams said Friday there is room for “further adjustment in the near term” to interest rates.
Traders are currently betting on 83% odds of a quarter-point cut at the Dec. 10 meeting, according to CME FedWatch.
But Dallas Fed President Lorie Logan on Friday called for holding rates “for a time,” and Boston Fed President Susan Collins said she was “hesitant” about the next policy move since “restrictive policy is very appropriate right now.”
Philadelphia Fed President Anna Paulson said she’s approaching the December meeting “cautiously.”
But Fed Governor Stephen Miran has said he would vote for a quarter-point cut if that meant the difference in getting lower rates. He has previously dissented in favor of a larger cut.
Meanwhile, Bessent said he is hoping for the next chairman to bring the role into a new era.
“I think we’ve got to kind of simplify things,” he said Tuesday.
“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.”
