Treasury Secretary Scott Bessent said Tuesday that President Donald Trump is expected to announce his choice for the next chair of the Federal Reserve before Christmas, signaling that the administration is moving quickly to reshape the central bank’s leadership as Trump begins his second term.
“I think there’s a very good chance that the president will make an announcement before Christmas,” Bessent said during an interview on CNBC. “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.”
The upcoming pick will determine who leads the Federal Reserve after Chairman Jerome Powell’s term expires in May. Powell was originally nominated to the post by Trump during his first term in office and later renominated for a second six-year term by former President Biden.
His leadership has been marked by aggressive interest rate hikes, controversial policy moves, and major debates about inflation and economic stability — points of contention for Trump and many conservatives who argue the Fed has too often driven up borrowing costs and undermined economic growth.
Trump has repeatedly hinted that he has narrowed the list of candidates who could replace Powell. According to reporting, the contenders include National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and current Fed Governor Christopher Waller.
All three have been publicly discussed by Trump over recent months as he prepares to install new leadership at the central bank that aligns more closely with his economic priorities.
Bessent suggested that the administration is looking for a Fed chair who will take a more restrained, traditional approach — a change from what many critics view as Powell’s overly activist posture. “I think we’ve got to kind of simplify things,” Bessent said. “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.”
The comment reflects a long-standing conservative view that the Federal Reserve has played a far too dominant role in the U.S. economy in recent years, moving from its historically quieter position into an outsized and highly political force. Trump himself has openly criticized the central bank for decisions that he says needlessly slowed economic momentum.
The decision on the next Fed chair will have sweeping implications for interest rates, inflation, markets, and the broader direction of U.S. economic policy. With Powell’s term ending in May, the timing of Trump’s announcement will likely shape both investor expectations and global financial markets heading into the new year.
As Christmas approaches, the administration appears poised to move quickly, signaling that Trump intends to install a Federal Reserve leadership team that reflects his push for lower interest rates, stable economic expansion, and a return to what many conservatives see as a more disciplined and less interventionist central bank.
With Bessent indicating that the decision is imminent, the nation now waits to see who Trump will select to guide the Fed at a pivotal moment for the U.S. economy.
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