Treasury Secretary Scott Bessent has narrowed down the list of potential candidates to succeed Federal Reserve Chairman Jerome Powell, according to recent reports. During a flight aboard Air Force One, Bessent indicated he has settled on five names to present to President Trump. Some of these candidates have ties to either the central bank or the White House, while one is notably associated with Wall Street.
President Trump has been vocal in his criticism of Powell, stating that the Fed has not acted swiftly or decisively enough on interest rates. He has referred to Powell in less-than-flattering terms, highlighting his frustration over the Fed’s approach to monetary policy. Bessent intends to update Trump on the candidates after Thanksgiving, even though Powell will remain in his position until May 15, 2026.
As the Federal Reserve approaches its October meeting, many expect a 25 basis points cut in interest rates, likely reducing the target range to between 3.75% and 4%. This move would mirror the Fed’s actions from September, and analysts anticipate another cut in December.
The candidates being considered include:
Michelle Bowman: Currently serving as the Fed’s Vice Chair for Supervision, Bowman expressed dissent during the last meeting, urging for rate cuts while others voted to keep rates unchanged. She has consistently supported a strategy for future cuts through the year.
Kevin Hassett: The director of the National Economic Council, Hassett has previously held a senior advisory role in the Trump administration. He recently noted that inflation rates are easing, which could lessen the pressure on the Fed to maintain its current course.
Rick Rieder: As BlackRock’s Chief Investment Officer for global fixed income, Rieder manages a substantial portfolio of customer assets. He shared that being considered for a Federal Reserve role would be a tremendous honor, emphasizing the impact of monetary policy on helping people.
Christopher Waller: Another dissenting voice during the last Fed meeting, Waller’s views reflect a growing division within the Fed, which has faced criticism for lagging in their rate-cutting measures amidst rising inflation and a cooling labor market.
Kevin Warsh: A former governor of the Federal Reserve, Warsh has been an outspoken critic of the Fed’s policies. He has pointed to a history of poor economic forecasting from the bank, which he claims has negatively impacted hard-working Americans due to rising inflation.
As the Federal Reserve prepares for significant decisions in the coming weeks, the growing debate surrounding effective monetary policy continues to take center stage.
