Treasury Secretary Scott Bessent said Wednesday the Trump administration is seeking a Federal Reserve chair with an “open mind” as he interviews 11 candidates to potentially replace Jerome Powell when his term expires in May.
“Everyone asks me what I’m looking for when I interview potential Federal Reserve chairs, and it’s just someone with an open mind, who’s not looking in the rearview mirror, who’s looking forward,” Bessent told Fox Business Network’s Mornings with Maria.
Bessent expects to wrap up the first round of interviews by early October. While he acknowledged being impressed with the strength of several candidates, he declined to name names. He plans to present former President Trump with a short list of finalists once the process concludes.
Trump’s Shortlist vs. Bessent’s Wider Net
Trump previously indicated that his top three choices included former Fed Governor Kevin Warsh, current Fed Governor Chris Waller, and Kevin Hassett, director of the National Economic Council.
Bessent, however, is broadening the pool. Last week he praised former St. Louis Fed President Jim Bullard after a lengthy interview, calling him “an expert on monetary policy” with both academic depth and institutional knowledge. BlackRock’s bond chief Rick Rieder has also reportedly been interviewed.
A Push for Fed Reform
Beyond the selection process, Bessent has openly criticized the central bank in a recent Wall Street Journal op-ed. He argued the Fed suffers from “mission creep” and “institutional bloat,” while also acting too slowly on interest rates — a pattern he says risks putting the Fed behind the curve as the labor market cools.
“The Fed needs to change course, re-establish credibility as an independent institution, and conduct an honest, nonpartisan review,” Bessent wrote.
Implications for Markets
The uncertainty around Powell’s successor is rippling across financial markets. For traders, the prospect of a leadership shift at the Fed is fueling volatility in the forex market, where participants are refining forex trading strategies to adapt to shifting interest rate expectations.
Investors are also eyeing opportunities in indices trading, as U.S. equity benchmarks react to Fed policy debates. Meanwhile, some are diversifying into crypto investment and the broader crypto market, both of which continue to attract attention as alternative hedges against policy uncertainty.
