Trump to announce new Fed chair replacing Jerome Powell before Christmas? Here's what Scott Bessent says

Treasury Secretary Scott Bessent on Tuesday said that there was a very good chance that the US President would announce a new chairman of the Federal Reserve before Christmas.

Bessent's remark comes days after Donald Trump stated that he thinks he already knows his choice for the next Fed chair.

The term of current Fed chair Jerome Powell ends in May.

In an interview with CNBC International, Bessent said, “So we're going to have the last interview in the second round today. We got five very strong candidates.”

“But it’s his prerogative, whether it’s before the Christmas holidays or in the new year. But I think things are moving along very well,” added Bessent.

The US Treasury Secretary also envisions a different role for the Fed.

“I think we’ve got to kind of simplify things. 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.”

Last week, without specifying details while responding to a question during an Oval Office appearance, Trump told reporters that he thinks he already knows his choice and they were talking to various people.

He added that they have some surprising names and we have some standard names that everybody's talking about. “We may go the standard way. It's nice to, every once in a while, go politically correct. But we have some great names.”

Trump also criticised Powell for not lowering interest rates faster.

“Frankly, I would love to get the guy currently in there out right now, but people are holding me back. He has done a terrible job.”

Five contenders for the Fed’s top post:

Kevin Hassett, White House economic adviser

Kevin Warsh, former Fed governor

Christopher Waller, current Fed governor

Michelle Bowman, Fed vice chair for supervision

Rick Rieder, BlackRock executive