Scott Bessent will interview candidates for Federal Reserve chair

Treasury Secretary Scott Bessent will personally interview the leading candidates to take over as chair of the Federal Reserve when the job becomes available next year, according to Bloomberg.

The process will run through the coming weeks, and the final decision will be made by President Donald Trump in the fall. The interviews will determine who makes it onto a short list for Trump to meet before he makes his choice.

Michelle Bowman, Philip Jefferson, and Lorie Logan are being seriously considered for the role. Michelle is the Fed’s vice chair for supervision, Philip is the vice chair of the board, and Lorie is the president of the Dallas Fed.

Scott will also speak with other contenders, including Trump’s economic adviser Kevin Hassett, Fed Governor Christopher Waller, economist Marc Sumerlin, and former Fed officials Kevin Warsh and James Bullard.

White House nomination gives Trump more time for chair search

Last week, Trump nominated Stephen Miran, who chairs the White House’s Council of Economic Advisers, to take a seat on the Fed’s Board of Governors until January. That seat became vacant after Adriana Kugler announced she would leave before the end of her term. Stephen’s nomination now heads to the Senate for confirmation.

With that position moving forward, the administration says there’s no urgency to pick the next Fed chair. Scott will finish his interviews before sending his recommendations to Trump. “The president will meet the finalists himself before deciding,” one official said.

Trump has made clear he thinks interest rates are too high, targeting much of his criticism at current Fed Chair Jerome Powell, whom he appointed in 2017. Powell’s term ends in May, but he can stay on as a governor until 2028 if he chooses.

If Powell remains, Trump’s options are limited to either promoting someone into the chair role from Stephen’s seat once it is filled in January or picking an existing governor like Michelle or Philip. Either option requires Senate confirmation.

Michelle, appointed to the Fed in 2018, has consistently taken a more aggressive stance on rate cuts. In July, she and Christopher voted for a quarter-point cut while the rest of the Federal Open Market Committee chose to keep rates unchanged for the fifth meeting in a row.

Philip, appointed by Joe Biden in 2022 and promoted to vice chair in 2023, has voted to hold rates steady all year. He would be the first Black Fed chair if selected and has so far received bipartisan support for his past appointments.

Lorie became head of the Dallas Fed in 2022 after years at the New York Fed managing the central bank’s massive securities portfolio. She has supported keeping rates where they are and has repeatedly warned about tariff-driven inflation. Dallas will not have a voting seat on the rate-setting committee until 2026, but she remains active in its policy discussions.

Contenders’ past interactions with Trump and policy focus

Kevin Hassett has already spoken directly with Trump about the chair position. Kevin Warsh was considered for the same role in 2017 but lost out to Powell. Trump later looked at him for Treasury Secretary in November.

Christopher Waller recently met with Trump’s team, which was reportedly impressed by his readiness to adjust policy based on forecasts rather than current data, as well as his detailed understanding of the Fed system. Marc Sumerlin and James Bullard are also in the running, though they have not had the same recent interactions with Trump’s administration.

The Federal Open Market Committee is made up of all seven governors, the president of the New York Fed, and four of the remaining eleven regional presidents on a rotating basis. That means whoever Trump chooses will have a central role in setting rates alongside the rest of the committee.

Scott’s interviews are expected to cover candidates’ positions on inflation, interest rates, and the Fed’s role in handling economic pressures. Once he completes the process, the short list will land on Trump’s desk for final review. The next Fed chair will take over in a period where every policy choice will be closely watched by markets, Congress, and the White House.

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