Overview

• Scott Bessent told CNBC he held a "very good" two-hour session with James Bullard and lauded his monetary policy experience and knowledge of the Fed.
• Bullard confirmed he met Bessent last week to discuss the chair role and said he would serve only if the Fed is set up for success with protected independence, a strong reserve-currency dollar, and low, stable inflation.
• The administration is interviewing candidates to replace Jerome Powell, whose term ends in May, though he could remain as a governor until 2028.
• Markets expect the Federal Open Market Committee to trim the 4.25%–4.50% target range by 25 basis points this week, and Bullard says traders are pricing about 75 basis points of easing by year-end.
• Bullard characterized tariff effects on inflation as likely transitory, pointed to softer labor demand tied to immigration changes, and emphasized due process for Governor Lisa Cook as legal proceedings continue.