Scott Bessent says 11 candidates, including Warsh, Hassett, and Waller, are in the running to replace Fed Chair Powell, with interviews starting September 1.
According to Scott Bessent, the U.S. Treasury Secretary, eleven candidates have the potential to succeed Jerome Powell as the next Federal Reserve Chair. This encompasses several Federal Reserve officials, including Fed Governor Chris Waller, currently the leading candidate for the position.
Bessent Offers an Update on the Potential Successor of Jerome Powell
Bessent stated in a FOX Business interview that eleven exceptionally qualified candidates have the potential to become the next Fed Chair. He observed that President Trump is acquainted with some of them but unaware of the others.
The Treasury Secretary disclosed that he and a few other White House officials will commence interrogating these candidates after Labor Day on September 1. Bessent said they will present a shortlist of three to four candidates to Trump after the interviews.
Additionally, he stated that Trump has a sophisticated perspective on monetary policy and holds the Federal Reserve in high regard, despite his consistent criticism of Jerome Powell for his refusal to reduce interest rates.
According to Bessent, the president believes that the U.S. Central Bank has become lost and is currently searching for an individual knowledgeable about monetary and regulatory policy and managing an institution such as the Fed.
Even though Jerome Powell’s term as Fed Chair concludes in May of the following year, Trump can designate the next Fed Chair at any time. This action has prompted apprehensions regarding the potential for a “Shadow Fed.” In the interim, it is believed that Fed Governors Chris Waller, Michelle Bowman, and Phillip Jefferson are among the eleven candidates that Bessent referenced, as previously reported.
Kevin Warsh, Kevin Hassett, Marc Summerlin, Lorie Logan, David Zervos, Larry Lindsey, Rick Rieder, and former St. Louis Fed President James Bullard are among the candidates who are reportedly in the running to succeed Jerome Powell.
Chris Waller is currently leading the race
According to Polymarket data, Chris Waller is the current frontrunner to succeed Jerome Powell as the next Federal Reserve chair. There is a 27% likelihood that Trump will nominate him as the next Federal Reserve chair this year.
Meanwhile, there is an 11.2% and 9.3% chance that the president will name Kevin Hassett and Kevin Warsh, respectively, Jerome Powell’s successor this year. However, the market still favors the possibility that Trump won’t name the next Fed chair this year, as there is a 37% probability that this is what will happen.
According to the report, Waller is preferred by the Trump team due to his readiness to operate on forecasts rather than current data. This contrasts with Powell, who advocates for a wait-and-see approach before making decisions regarding monetary policies.
It is essential to mention that the Federal Reserve chair hinted at the prospect of a rate cut in September during the Jackson Hole conference. This occurred as he acknowledged that the labor market’s adverse risk is rising.
