Treasury Secretary Scott Bessent confirmed on Tuesday that the second phase of interviews to select the person who will lead the Federal Reserve once the current term ends is underway. According to the official, the process is at a crucial stage, and there is a “very high probability” that President Donald Trump will announce his choice before Christmas.
The president has maintained a critical stance toward the
current Fed chairman, Jerome Powell, particularly for his refusal to lower
interest rates, a move Trump considers necessary to stimulate the economy. This
tension has been recurring despite the fact that Trump himself nominated Powell
during his first administration.
Powell's term ends in May, and although several voices have
suggested he resign before then to facilitate the transition, he has reiterated
that he will not leave office early.
The continuity or replacement of the Federal Reserve
chairman is a key issue for financial markets and for the direction of monetary
policy in the coming years. The Treasury Department has not released the names
of the interviewed finalists, but speculation about the potential nominee is
expected to increase in the coming days, given the approaching deadline
mentioned by Bessent.
The final decision could mark a shift in the country's
economic strategy just as the main challenges of the next fiscal cycle begin to
take shape.