Key Points
- President Trump is expected to announce his pick for the next Fed chair within a week.
- The short list of candidates includes Chris Waller, Kevin Warsh, Rick Rieder, and Kevin Hassett.
- The nomination could be blocked by Republican Senator Tom Tillis over the ongoing investigation into Jerome Powell.
- The administration is also promoting a new “Trump accounts” savings program for children.
President Trump could announce his pick for the next chair of the Federal Reserve as early as next week, according to Treasury Secretary Scott Bessent. The news comes as the financial world is on edge, waiting to see who will lead the powerful central bank when Jerome Powell’s term expires in May.
“I was talking to the president about what he’s thinking… and my inclination is we may hear something in the next week or so,” Bessent said in an interview on Wednesday.
The short list of candidates reportedly includes Fed governor Chris Waller, former Fed governor Kevin Warsh, BlackRock’s Rick Rieder, and National Economic Council Director Kevin Hassett. Trump is looking for a leader who will be more aggressive in cutting interest rates to keep the economy growing.
However, the nomination process could face a roadblock. Republican Senator Tom Tillis has threatened to block any nominee until the Justice Department’s criminal investigation into current chair Jerome Powell is resolved. The White House, however, seems confident that a new chair will be in place by May.
Bessent and his team were speaking at an event to promote “Trump accounts,” a new tax-advantaged savings program for children that was included in last year’s tax bill. The program, which includes a $1,000 government contribution for newborns, is already proving to be popular, with 600,000 people signing up in the first three days of tax season.
Bessent said this program could be the president’s “most enduring legacy.”
