Core Theme - The key theme in the search for the next chair of the Federal Reserve is to simplify the operations of the US central bank, which has become overly complex in managing money markets [1][2]. Candidate Selection - Treasury Secretary Scott Bessent is conducting final interviews with five candidates to succeed Chair Jerome Powell, with an announcement from President Trump expected before December 25 [2]. Current Fed Operations - The Federal Reserve currently employs an ample reserves approach to control its policy interest rate, maintaining a significant amount of Treasuries on its balance sheet and paying interest on reserves held by banks [3]. Balance Sheet Management - Policymakers decided to halt the contraction of the Fed's balance sheet as of December 1 to ensure liquidity remains ample, after previously shrinking its portfolio since June 2022 [4]. Simplification of Operations - Bessent emphasized the need to simplify the various facilities and operations of the Fed, including the standing repo facilities, although he did not specify how these changes should be implemented [5]. Repo Facility Usage - The Standing Repo Facility has seen increased usage, reaching $50.4 billion on October 31, marking the highest level since it was made permanent in 2021 [6].