- Treasury Secretary Scott Bessent confirmed President Trump will likely name a new Fed Chair before Christmas.
- The shortlist of five finalists includes Kevin Hassett, Kevin Warsh, Christopher Waller, Michelle Bowman, and Rick Rieder.
- Kevin Hassett is viewed as the frontrunner due to his support for immediate, aggressive interest rate cuts.
President Donald Trump expects to name the next Federal Reserve Chair before Christmas. Treasury Secretary Scott Bessent confirmed the accelerated timeline this week, stating the search has entered its final phase. The role will shape the direction of US monetary policy at a time when rate cuts divide current policymakers.
According to Reuters, Bessent has whittled the candidate list down to five finalists. The group includes White House adviser Kevin Hassett and former Fed Governor Kevin Warsh. They are joined by current Governors Christopher Waller and Michelle Bowman, as well as BlackRock executive Rick Rieder.
Bessent said that the latest stage of discussions revolve on how each candidate would guide a complex central bank through volatile inflation and labor market conditions.
Related: Jerome Powell to Exit Fed Chair Role in 2026 as Leadership Debate Intensifies
Why Kevin Hassett Is the Frontrunner
Bloomberg reported that advisers and allies see Hassett as the leading contender. Hassett backs Trump’s view that interest rates in the United States should be far lower than current levels.
He previously stated on Fox News that he would cut benchmark rates immediately based on current economic data. His proximity to Trump and his advocacy for deeper rate cuts has put him as the frontrunner.
The White House, however, cautioned against assuming the result. Press Secretary Karoline Leavitt said that no one outside Trump’s inner circle knows the final decision and that any speculation remains premature.
Betting markets on platforms such as Kalshi and Polymarket show a tight contest between Hassett and Waller, with both receiving support as the interview stage progressed.
Trump’s frustration with current Fed Chair Jerome Powell is adding pressure as well. Powell has cut rates modestly this fall but not at the pace Trump wants. Powell’s term as chair ends in May 2026, though he can continue as a governor beyond that date.
Policy Divide Shapes the Selection Process
The Federal Reserve cut interest rates by a quarter point in both September and October. With a third cut possible in December, policymakers are divided over inflation trends and labor market risks.
Waller and Bowman, both appointed during Trump’s first term, have supported lower rates due to concerns about weakening job data. Bessent continues to balance candidates who favor rate reductions with those who can maintain confidence in financial markets.
The next Fed chair will also fill a governor term that begins on February 1, replacing Stephen Miran. Trump said last week that he already knows his preference but will wait for the right moment to reveal it.
Related: Housing Proposals, Burry’s AI Warning, and the Fed Collide to Shake US Markets
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Source: https://coinedition.com/trump-fed-chair-finalists-before-christmas-kevin-hassett-frontrunner/
