Trump Could Name A New Fed Chair By Christmas, Treasury Secretary Bessent Says

Core Insights - President Donald Trump is expected to announce a new Federal Reserve Chair before Christmas, as Jerome Powell's term expires in May [1][6] - Trump aims to appoint a candidate who is willing to lower the federal funds rate, indicating a shift in monetary policy direction [2][3] Candidate Considerations - Five candidates are under consideration for the Fed Chair position: Fed Governors Michelle Bowman and Christopher Waller, former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, and BlackRock director Rick Rieder [2][6] - Trump's previous criticisms of Powell include accusations of maintaining excessively high interest rates, which he believes hinder economic growth [3][6] Economic Implications - The Federal Open Market Committee, which consists of 12 members, votes on interest rates, but the Chair plays a crucial role in setting the agenda and influencing monetary policy decisions [3] - The federal funds rate impacts borrowing costs across various loans, and the Fed's dual mandate focuses on maintaining low inflation and high employment [4]