Bessent says interviews for new Fed chair to start around Sep 1

[WASHINGTON] US Treasury Secretary Scott Bessent said on Tuesday (Aug 19) that interviews for Federal Reserve Chair Jerome Powell’s replacement are set to take place around Sep one – with 11 candidates being considered for the position.

President Donald Trump’s choice of Powell’s successor is a closely watched process, after the US leader repeatedly lashed out at the independent central bank over its decisions to hold off interest rate cuts this year.

Powell’s term at the helm of the Fed ends in May 2026.

Fed policymakers have approached rate cuts with caution as they monitor the effects of Trump’s sweeping tariffs impacting trading partners.

Trump has made no secret of his disdain, openly calling Powell a “numbskull” and “moron” in recent months.

For now, Bessent told CNBC that there are 11 “very strong candidates” being considered for Powell’s position.

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“I’m going to be meeting with them, probably right before, right after Labor Day, and to start bringing down the list to present to President Trump,” he added on Tuesday.

“It’s an incredible group. It’s people who are at the Fed now, have been at the Fed and private sector, so I’m looking forward to meeting all of them with a very open mind,” Bessent said.

While the Treasury chief did not specify who was on the list, media reports note that the names include current Fed governors Michelle Bowman and Christopher Waller.

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Others include former Fed governor Kevin Warsh and National Economic Council director Kevin Hassett.

Also reportedly under consideration are James Bullard, a former regional Fed president and Marc Sumerlin, former economic adviser to President George W Bush.

Bessent himself was earlier viewed as a potential choice by the president, but Trump said earlier this month that Bessent was no longer in the running given that he wants to remain where he is.

The Fed’s next policy meeting is in mid-September.

Investors are keeping a keen eye on Powell’s remarks Friday at an annual central bankers’ gathering in Jackson Hole, Wyoming, for hints of whether further rate cuts are on the way. AFP