U.S. Treasury Secretary Scott Bessent has announced a list of five finalists to replace U.S. Federal Reserve Chair Jerome Powell when his term ends next spring.
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Bessent also said that the next Fed chair is likely to be named by the end of this year by U.S. President Donald Trump. The five finalists to lead the U.S. central bank are current Fed Governors Christopher Waller and Michelle Bowman, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock executive Rick Rieder.
Bessent, who himself had been rumored to be a top candidate to lead the Federal Reserve, said he has been conducting interviews and that he expects to do one more round before Trump makes a final decision in the next few months.
Rate Cuts
Trump, also speaking to reporters on Oct. 27, said he expects to name Powell’s replacement by the end of this year. Powell’s term doesn’t expire until May, and he can then either step leave the Fed entirely or continue serving a term as central bank governor until 2028.
News that Trump is close to naming Powell’s successor comes as the U.S. Federal Reserve is expected to lower interest rates 25 basis points at the conclusion of its Oct. 29 meeting. Futures traders are pricing in a near 100% chance that the American central bank lowers interest rates in coming days.
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