U.S. Treasury Secretary Scott Bessent believes there's "a very good chance" that President Donald Trump chooses a new head of the Federal Reserve before Christmas.
Speaking Tuesday on CNBC, Bessent — who has been leading the search for a replacement to current Federal Reserve Chairman Jerome Powell — said he had one final interview to conduct but that he's not going to speculate on who the president may choose to succeed Powell, whose term ends in May 2026.
"I don't think it would be prudent to give any hints and I think that there's a very good chance the president makes an announcement before Christmas," Bessent said. "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.”
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President Trump, who has been a vocal critic of current Fed Chairman Powell, said earlier this year that his exit "can't come soon enough." The president has blamed Powell directly for not lowering interest rates more throughout the year, arguing that it is hurting the economy.
Last month, the Fed cut its key interest rate for a second time this year, bringing it down from about 4.1% to roughly 3.9%. The decision came after the central bank had cranked its rate to over 5% in 2023 and 2024 to combat high inflation.
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The Fed's key monetary policy goal is to keep employment high and inflation stable. President Trump declared last month that inflation is "defeated," despite inflation numbers rising in recent months. Meanwhile, a recent report from the Bureau of Labor Statistics showed unemployment rose slightly to 4.4% in September — it's highest point in nearly four years.
The data will help guide the Federal Reserve in deciding whether to adjust interest rates again. The Federal Open Market Committee is scheduled to meet again Dec. 9–10.
