Treasury Secretary Scott Bessent is narrowing down the list of candidates for the upcoming chair of the Federal Reserve, having trimmed it from 11 to five following extensive interviews that lasted up to two hours. Among the candidates now in contention are two current Federal Reserve officials: Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller. The list also includes Kevin Hassett, director of the National Economic Council, former Fed Governor Kevin Warsh, and Rick Rieder, BlackRock’s Chief Investment Officer for Fixed Income.
In the coming weeks, Bessent, along with two senior Treasury officials and two senior White House officials, will conduct another round of interviews with these five candidates. However, with Bessent’s focus shifting to the World Bank and IMF meetings next week and a subsequent trip to Asia with President Trump, the interview process is not expected to conclude until after Thanksgiving.
Once the interviews are complete, Bessent plans to present a smaller slate of candidates to President Trump, who will make the final selection. It is likely the nominated individual will first be appointed as a Fed governor before potentially being named chair. This strategy arises from the proximity of outgoing Fed Chair Jerome Powell’s term, which ends in May, allowing for a transition to a seat with a full 14-year term. In contrast, the seat currently occupied by Stephen Miran will end in January, which is more favorable for a new chair.
Previous announcements have highlighted Warsh, Hassett, and Waller as finalists, making Rieder and Bowman new recommendations to the White House. The Trump administration is notably transparent in its process compared to prior administrations, publicly sharing developments regarding the candidate selection. However, the administration remains critical of the Fed’s policies, with the president repeatedly calling for lower interest rates and even threatening to remove Powell. Additionally, the recent firing of Fed Governor Lisa Cook, amid allegations of mortgage fraud-which she denies-has raised concerns about the independence of the Fed and intensified scrutiny on the forthcoming appointment.
Recently, Treasury officials disclosed insights into Bessent’s criteria for selecting the next Fed chair. He seeks a candidate who embraces innovative approaches to monetary policy and possesses considerable experience in economics, banking regulation, and management. Rieder, a well-known figure on Wall Street, has gained attention for his analytical insights and has managed a significant department at BlackRock. Official sources indicate that while no single candidate is leading at this time, Rieder’s strong performance during interviews has made a favorable impression.
Bessent has vocally critiqued the Federal Reserve in recent writings, advocating for a comprehensive review of its policies and mission. He has voiced concerns about the Fed’s expansion and the risk of mission creep, suggesting a preference for candidates who might favor a streamlined approach going forward. As the search for the next Fed chair unfolds, the outcome promises to have significant implications for U.S. monetary policy and the broader economy.
Original Source: https://www.cnbc.com/2025/10/10/trumps-fed-chair-candidates-list-narrowed-down-to-five-by-bessent-after-interviews-sources-say.html
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Publish Date: 2025-10-10 16:37:00
