On November 25, 2025, the U.S. Treasury Secretary Scott Bessent stated that he expects President Donald Trump to make a decision on the new Federal Reserve Chairman before Christmas.
In an interview with CNBC, Bessent said, “I believe the President is very likely to make an announcement before Christmas.” He added that although the decision ultimately lies with the President, he believes the selection process is progressing very smoothly.
Bessent is currently leading the search for a successor to the current Federal Reserve Chairman, Jerome Powell, whose term expires in May 2026. The Trump administration hopes to change the central bank’s policy direction.
President Trump has been outspoken in his criticism of the Federal Reserve, citing Powell’s cautious approach on interest rate cuts this year as too slow. He has emphasized that the Federal Reserve should take more proactive measures, provide better lending conditions, and stimulate economic growth.
During Bessent’s leadership in selecting a new candidate, Trump urged him to “resolve Powell’s issues quickly” or risk being fired. Bessent clarified that the President was joking at the time, but he admitted that “monetary policy has become very complex, it’s not just about interest rate cuts.”
Bessent mentioned that there is one more candidate left for an interview. The final shortlist is expected to include several industry and government economic experts, including current Federal Reserve Board members Christopher Waller and Michelle Bowman, former Federal Reserve official Kevin Warsh, White House National Economic Council Director Kevin Hassett, and BlackRock executive Rick Rieder.
Bessent envisions that the new Federal Reserve should diminish its dominant role in the economy and financial markets since the financial crisis. He believes “it’s time for the Federal Reserve to step back as it did in the past, calm things down, and serve the American people.”
Powell and his team are currently under pressure. While the Federal Open Market Committee (FOMC) has cut interest rates at the last two meetings, there is a division among committee members on whether to cut rates again in December. These central bankers are navigating between controlling stubborn inflation and meeting the demand to stimulate sluggish employment.
According to CME Fedwatch tool, the market widely expects a high probability of 84.7% for the FOMC to cut rates again in December.