Trump Could Decide on Powell’s Successor Next Week, Scott Bessent Says

U.S. Treasury Secretary Scott Bessent said on Tuesday that President Donald Trump may choose the next Fed chair next week. He spoke on CNBC, noting months of vetting since September and direct meetings with finalists. The decision follows Trump’s dissatisfaction with the rate policy and comes as Jerome Powell’s term ends May 15.

Fed Chair Could Be Announced as Early as Next Week

According to Bessent, the selection process has narrowed from eleven candidates to four finalists. He said Trump has already met each contender and discussed the role in detail. Notably, Bessent suggested the timing reflects completion of internal reviews rather than market pressure.

He added that the administration has prioritized continuity in monetary operations during the change. However, he declined to name a frontrunner or confirm a final timeline. With Powell’s term ending mid-May, the window for a decision has tightened.

The potential Fed chair announcement could come amid the January FOMC meeting, which will be held between January 27 and 28. As CoinGape reported, the Fed is likely to hold rates steady after cutting rates three times last year.

The finalists include Trump adviser Kevin Hassett, Fed Governor Christopher Waller, former Fed Governor Kevin Warsh, and BlackRock bond chief Rick Rieder. As per Polymarket odds, Kevin Warsh leads with 61 percent, followed by Rick Rieder at 20 percent. Christopher Waller holds 11 percent, while Kevin Hassett trails at 5 percent.

Source: Polymarket

The odds are market expectations rather than official guidance. However, they show growing confidence in candidates with prior Fed or institutional investment experience. Bessent emphasized that Trump personally interviewed all four candidates before narrowing the field.

Hassett, Powell, and Recent Political Friction

Hassett recently said Trump has not made a decision and suggested he would remain in the West Wing. Trump publicly told Hassett he wanted him to stay, which reduced expectations of a Fed chair move. Previously, observers viewed Hassett as a strong contender.

Meanwhile, Trump has criticized Powell for not cutting rates faster. The Justice Department has opened a criminal investigation into Powell’s Senate testimony, with grand jury subpoenas sent to the Fed. Powell said the inquiry appears politically motivated.

Bessent also criticized Powell’s plan to attend a Supreme Court hearing on Wednesday. The case concerns Trump’s attempt to remove Fed Governor Lisa Cook. Bessent said Fed independence matters, though he called Powell’s attendance a mistake.

As the decision nears, Trump faces a compressed timeline. Bessent’s comments outlined a nearly finished process with four names remaining. With Powell’s term ending soon, attention is now on the president’s next move.