U.S. Treasury Secretary Becerra: Will submit the Federal Reserve Chair nominee to Trump in December

On Wednesday, U.S. Treasury Secretary Scott Bessent stated that he would submit a list of candidates to President Trump in December for the selection of the next Federal Reserve Chair. "We expect to present three to four candidates for the president to interview after Thanksgiving and during December." Bessent revealed that the previous 11 candidates have been narrowed down to five. According to media reports, these five include: current Federal Reserve Vice Chair for Supervision Michelle Bowman, current Federal Reserve Governor Christopher Waller, current Director of the National Economic Council Kevin Hassett, former Federal Reserve Governor Kevin Warsh, and BlackRock executive Rick Rieder. Bessent stated that Trump's decision-making style is consistently to "broadly solicit opinions," seeking the views of "dozens or even hundreds of people" before making a final decision. Bessent also reiterated that he himself would not be one of the candidates for Federal Reserve Chair. He is currently leading the selection process to find a successor for current Chair Jerome Powell, whose term ends in May 2026. Currently, the selection process for the next Federal Reserve Chair places candidates in a delicate balance: they must demonstrate to Trump their willingness to support significant interest rate cuts while also proving to the market that they possess sufficient economic expertise and can maintain relative independence. Trump has repeatedly criticized Powell for "cutting rates too slowly" and has expressed a desire for the Federal Reserve to lower rates by three percentage points. However, investors are concerned that such aggressive policies could lead to turmoil in the bond market and soaring inflation. Regarding whether candidates must support interest rate cuts, Bessent did not respond directly, only stating that his two main criteria for candidates are: "First, whether you maintain an open mind; second, what your judgment is regarding the current situation." He added, "The Federal Reserve is a large and complex institution, involving payment systems and regulatory affairs, so candidates must also possess certain management capabilities." The new Federal Reserve Chair is expected to be appointed as a Federal Reserve Governor for a 14-year term, starting in early 2026. At the same time, Trump is also seeking to replace current Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud. The U.S. Supreme Court is scheduled to hear arguments in this case in January, but Cook may continue to serve during the proceedings