Treasury Secretary Scott Bessent says there's ‘very good chance' Trump names new Fed chair by Christmas

Core Viewpoint - There is a strong possibility that President Trump will announce a new Federal Reserve Chair by Christmas, as indicated by Treasury Secretary Scott Bessent, who is leading the search for a replacement for Jerome Powell [1][3]. Group 1: Replacement Search - Bessent mentioned that he has one final interview left and is not ready to speculate on potential successors to Powell, who Trump has expressed a desire to fire [1][3]. - Finalists for the Fed Chair position reportedly include Kevin Hassett, Kevin Warsh, Christopher Waller, Michelle Bowman, and Rick Rieder [3]. Group 2: Trump's Criticism of Powell - Trump has been critical of Powell for not reducing interest rates quickly enough, stating that Powell has "mental problems" and expressing a desire to "fire his ass" [4][10]. - During a recent event, Trump humorously urged Bessent to address the issue of high rates, indicating urgency in the matter [5][7]. Group 3: Current Monetary Policy Context - The Federal Reserve has recently cut interest rates by a quarter-point in September and October, bringing rates to a range of 3.75% to 4% [7][10]. - Market expectations indicate an 83% probability of another quarter-point cut at the upcoming December 10 meeting [10]. - Fed officials are divided on the future direction of interest rates, with some advocating for a pause while others support further cuts [10][11]. Group 4: Future Vision for the Fed - Bessent expressed a desire for the next Fed Chair to simplify monetary policy and allow the Fed to take a less prominent role, focusing on serving the American people [11].