President Donald Trump is close to nominating the next chairman of the Federal Reserve, with a decision potentially coming as soon as next week, according to Treasury Secretary Scott Bessent.
Speaking to CNBC’s Squawk Box during the World Economic Forum in Davos, Switzerland, Bessent said the White House has narrowed a months-long selection process to just four candidates.
“My guess is the president will reach a decision maybe as soon as next week,” Bessent said, adding that Trump has personally met with all remaining contenders after a screening process that began in September with 11 candidates.
While Bessent declined to name the four finalists, previous comments and reporting suggest the shortlist has included:
Prediction markets have recently favored Warsh, with Waller and Rieder trailing, after Trump signaled a preference for Hassett to remain in his current White House role. Bessent, who led the screening process, said the final choice rests solely with the president and did not indicate a personal preference. Trump reinforced that message on Wednesday, saying that the field has narrowed even further.
“I’d say we’re down to three, but we’re down to two. And we’re down to maybe one, in my mind,” Trump said, while declining to identify the candidate.
He described Rieder as “impressive” and praised all the finalists, though he reiterated that Hassett is likely staying at the National Economic Council. Trump also dismissed speculation that Bessent himself could take the Fed role, saying the Treasury secretary prefers to remain where he is.
The looming announcement comes amid heightened tensions between the White House and current Fed Chairman Jerome Powell.
Trump and Bessent have repeatedly criticized Powell’s handling of monetary policy, interest rates, and internal governance at the central bank. Those criticisms have intensified following ethics-related resignations among senior Fed officials and a Justice Department subpoena tied to the $2.5 billion renovation of Fed headquarters.
“If that happened at a Wall Street firm, the CEO would be out,” Bessent said, arguing that independence should not mean a lack of accountability.
Powell, first nominated by Trump in 2017 and reappointed by former President Joe Biden, faces the end of his chair term in May. He could remain on the Board of Governors until 2028 if he chooses. Trump suggested little concern over whether Powell stays on as governor, even though doing so would preserve his voting power on monetary policy and potentially act as a counterweight to the administration.
“We live with the cards you’re dealt,” Trump said. “If that happens, his life won’t be very, very happy, I don’t think.”
With Powell’s removal as chairman widely expected and the shortlist tightening, markets are increasingly focused on who will lead the Fed next and what that choice could mean for interest rates, central bank independence, and US monetary policy going forward.
In conclusion, Trump’s statement that he has a top choice to replace Jerome Powell as Fed Chairman has drawn strong attention from financial markets and policymakers. Any change in Federal Reserve leadership could influence interest rates, inflation control, and overall economic strategy, especially for global and Money Middle East investors following US monetary policy closely. As developments unfold, markets will watch closely to see how this potential transition could shape the future direction of the US economy.
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