Trump may decide on Fed chair before or after Davos, Bessent says

Treasury Secretary Scott Bessent said President Trump may decide this month on a successor to Federal Reserve Chair Jerome Powell, possibly right before or right after the Davos forum, and that four candidates remain under consideration including Kevin Hassett, Kevin Warsh, Christopher Waller and Rick Rieder.

Treasury Secretary Scott Bessent said he expects President Donald Trump to decide this month on a successor to Federal Reserve Chair Jerome Powell. He told the Economic Club of Minnesota the timing may be right before or right after the Davos forum scheduled for Jan. 19-23. Bessent said there continue to be four candidates under consideration. He noted Rick Rieder is the only candidate without prior Fed experience and the only one with a pending interview. Key points: - Bessent said the Fed decision may come in January, potentially immediately before or after the Davos meeting. - Four candidates remain under consideration: National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, and BlackRock executive Rick Rieder. - Rieder is reported as the only candidate without previous Fed experience and the only one with a pending interview. - CNBC cited Bessent as calling for the Federal Reserve to continue cutting interest rates, saying lower rates are "the only ingredient missing for even stronger economic growth." Bessent did not repeat those exact lines in the remarks he delivered. - The Fed last month did not signal an extension of its series of rate reductions from 2025; policymakers meet Jan. 27-28 and futures trading shows only a minimal chance of a move at that meeting. Summary: Bessent’s comments place a potential White House decision on the Fed chair around the Davos forum and before the Federal Reserve’s Jan. 27-28 meeting, a period when officials are assessing inflation and jobs data. Undetermined at this time.