1 of 3 | U.S. Treasury Secretary Scott Bessent (pictured in the Rose Garden of the White House in Washington, D.C., on Tuesday) said President Donald Trump is likely to select the next chair of the Federal Reserve before Christmas. Photo by Bonnie Cash/UPI | License Photo
Treasury Secretary Scott Bessent said Tuesday President Donald Trump is likely to select the next chair of the Federal Reserve before Christmas.
Bessent made the remarks in an interview on CNBC, where he offered an update on his work overseeing the search for a successor to Jerome Powell, the current chair whose term ends in May 2026. Trump has pressured Powell to lower interest rates, raising questions about the independence of the nation’s central bank.
In the interview, Bessent said he was seeking a simpler and more subtle role for the Fed, which plays a pivotal role in financial markets and the economy.
“I think we’ve got to kind of simplify things,” he said. “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.”
Since returning to the White House, Trump has lobbed criticisms at Powell over his cautious approach to lowering interest rates after a period of high inflation. Trump, who first appointed Powell, has called him a “clown” and openly talked about wanting to fire him.
Inflation is currently at 3%, just shy of the Fed’s 2% target. But members of the Federal Open Market Committee, the bank’s primary monetary policy-setting body, were divided on whether to support rate cuts at its December meeting.
Further complicating the Fed’s work is news that the Consumer Price Index report for October will not be available for its upcoming meeting. The monthly report presents a snapshot of consumer prices, but the recent government shutdown delayed its release.
Bessent said the list of candidates for Fed chair has been narrowed to five and work was progressing well. But he noted the final pick is up to Trump “whether it’s before the Christmas holidays or in the new year.”
