Fed Chair Nominee Likely Before Christmas, Bessent Says
Fed Chair nominee likely before Christmas, Treasury Secretary Scott Bessent said, sharpening trader focus on the December FOMC and market positioning.
KEY TAKEAWAYS
- Bessent said a Fed Chair nominee was likely before Christmas, with final interviews nearly complete.
- Reported shortlist includes Waller, Bowman, Warsh, Hassett and Rick Rieder.
- CME FedWatch showed an 84.7% probability of a December rate cut.
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Fed Chair nominee prospects sharpened on Nov. 25, 2025, after Treasury Secretary Scott Bessent said President Trump is likely to announce a nominee before Christmas as final interviews near completion, heightening scrutiny of the December Federal Open Market Committee (FOMC) meeting and near-term policy direction.
Nomination Timeline and Policy Outlook
Treasury Secretary Scott Bessent is leading the search for the next Federal Reserve chair and has one candidate interview remaining before making a final recommendation. He expects to complete interviews by mid-December, with President Trump meeting the final three candidates. Any nominee must be confirmed by the U.S. Senate, and no formal nomination had been submitted as of Nov. 25.
The reported shortlist includes Federal Reserve Governors Christopher Waller and Michelle Bowman, former Governor Kevin Warsh, National Economic Council Director Kevin Hassett, and BlackRock executive Rick Rieder. The administration seeks a candidate who is forward-looking on regulation, aligning with President Trump’s preference for a more aggressive approach to interest-rate cuts. Trump has expressed dissatisfaction with current Fed Chair Jerome Powell, whose term expires in May 2026.
The FOMC remains divided on further easing and will meet in December. The CME FedWatch Tool showed an 84.7% probability of a rate cut at that meeting, reflecting strong market expectations. The Bureau of Labor Statistics reported nonfarm payrolls rose by 119,000 in September 2025, though longer-term employment growth remains weak. This combination of an accelerated selection process and market anticipation gives the nomination’s timing immediate policy significance ahead of the December meeting.
