Overview
- During remarks in Japan, President Donald Trump said he was considering Treasury Secretary Scott Bessent to lead the Federal Reserve, then quickly reversed himself and praised Bessent for calming markets.
- Bessent confirmed five finalists to succeed Jerome Powell: Fed governors Christopher Waller and Michelle Bowman, former governor Kevin Warsh, White House economic adviser Kevin Hassett, and BlackRock executive Rick Rieder.
- He said a second round of interviews will follow Thanksgiving before he presents a list to Trump, with a decision targeted before the end of 2025 as Powell remains expected to serve until May 2026.
- Trump has repeatedly criticized Powell for not cutting interest rates quickly enough and has signaled he wants a chair more aligned with faster easing.
- The finalist announcement comes as the FOMC is expected to approve another 25-basis-point rate cut on Wednesday, following a similar move in September that lowered the federal funds rate to a 4.00%–4.25% range.