President Trump’s decision on the next Federal Reserve chairman could come as soon as next week, Treasury Secretary Scott Bessent said Tuesday.
Trump has narrowed the race down to four potential candidates to replace Federal Reserve Chairman Jerome Powell, including Former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller and BlackRock exec Rick Rieder.
“My guess is the president will reach a decision maybe as soon as next week,” Bessent told CNBC’s “Squawk Box” during an interview at the World Economic Forum in Davos, Switzerland.
“We’ve had substantial conversations about this. We’ve run a process that started in September – 11 very strong candidates. We’re now down to four candidates. The president has personally met with all of them, and it’s going to be his decision.”
Bessent also said Powell – who is currently facing a criminal investigation concerning the Fed’s over-budget headquarters renovation – should not attend the Supreme Court’s arguments about Trump’s move to fire Fed Governor Lisa Cook.
Powell reportedly plans to attend oral arguments in a case that challenges Trump’s attempt to remove Cook over allegations of mortgage fraud, according to CNBC.
“I actually think that’s a mistake,” Bessent told the outlet at the Davos conference. “If you’re trying not to politicize the Fed, for the Fed chair to be sitting there trying to put his thumb on the scale, that’s a mistake.”
Trump has repeatedly threatened to fire Powell, bashing the chairman for not lowering interest rates quickly enough.
Powell’s term at the helm expires in May, though he could choose to stay on the board through 2028. He has so far declined to comment on whether he will remain a Fed governor.
Last week, Powell revealed that he’s under criminal investigation for allegedly lying during congressional testimony last summer over the Fed’s $2.5 billion headquarters renovation in DC.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said in a stunning video statement.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions – or whether instead monetary policy will be directed by political pressure or intimidation.”
Trump first nominated Powell to lead the Fed at the start of his first presidential term.
Last week, Warsh surged ahead of Hassett on prediction markets betting on who the next Fed chairman will be after Trump said he’d like to keep Hassett in his current role as an economic adviser.
Trump also ruled out Bessent for the role “because he wants to stay where he is.”
Markets had placed better odds on Hassett for weeks. While Trump said he’d like to keep Hassett in his current job, it’s not impossible for him to end up with the nomination.
After Fed Governor Adriana Kugler unexpectedly resigned last summer, Trump tapped Stephen Miran, then a top White House economic adviser, to fill the role. Miran refused to fully resign from his White House job, instead taking an unpaid leave of absence.
