Bessent says there’s a ‘very good chance’ Trump names new Fed chair before Christmas

Treasury Secretary Scott Besant said Tuesday he expects President Donald Trump to make a decision on the new Federal Reserve chairman by the holiday season.

In the CNBC interview, Bessant, who is leading the search for a successor to current Chairman Jerome Powell, said he has yet to give an interview and he is not ready to predict who might get the job.

“I think there’s a very good chance the president will make an announcement before Christmas,” he said. “But that’s their prerogative, whether it’s before the Christmas holidays or in the New Year. But I think things are progressing very well.”

Trump has been a fierce Fed critic and recently said he would “love” to fire Powell and encouraged Besant to “work” the chair into getting the central bank to lower its key interest rate.

Referring to Besant, Trump also joked that “If you don’t fix this quickly, I’ll set your ass on fire.”

“If you had been in the room, he would have been joking,” Besant said. “We’ve reached the point where monetary policy has become very complex, and it’s much more than just cutting rates.”

Powell’s term ends in May 2026, and before then he is expected to take on the sharply divided Federal Open Market Committee, which is divided on the need for further cuts. Based on recent statements by New York Fed Chairman John Williams, the market largely expects the FOMC to approve a third consecutive rate cut at its December meeting.

Meanwhile, Besant continues to interview candidates for the presidency. The list of finalists is believed to include National Economic Council Director Kevin Hassett, former Governor Kevin Wersh, BlackRock executive Rick Ryder and current Fed Governors Christopher Waller and Michelle Bowman.

Bloomberg News, citing sources familiar with the matter, reported Tuesday that Hassett is the frontrunner for the position. CNBC has contacted the White House for comment.

Besant said he envisions a different role from the Fed’s dominant position on the economy and financial markets since the financial crisis.

“I think we have to simplify things a little bit,” he said. “I think it’s time for the Fed to step back into the background, like it used to, cool things down and work for the American people.”