President Donald Trump is approaching a decision on the next Federal Reserve chair, Treasury Secretary Scott Bessent told CNBC on Tuesday. The president has narrowed the field to four finalists to succeed current chair Jerome Powell.
🚨BREAKING: Treasury Secretary – Scott Bessent says that President Trump could decide on next Fed chair as soon as next week!
💥THE NEW FED CHAIR WILL BE PRO CRYPTO💥 #XRP pic.twitter.com/VTH00z45eD
— JackTheRippler ©️ (@RippleXrpie) January 20, 2026
Bessent, speaking from the World Economic Forum in Davos, Switzerland, said the decision could be made “as soon as next week.” The selection comes after months of deliberation involving a larger pool of candidates and extensive interviews with the president.
Four Candidates Remain in Final Consideration
The shortlist includes National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, and BlackRock executive Rick Rieder. Bessent did not reveal the final four during his interview.
Earlier reports suggested a slightly larger group of five potential nominees, including Fed Governor Michelle Bowman. Prediction markets currently show Warsh leading, followed by Rieder and Waller, after Trump indicated Hassett may remain in his White House role.
Bessent emphasised that the process, which began in September, has been thorough. “We’ve had substantial conversations about this. We’ve run a process that started in September, 11 very strong candidates,” he said.
Trump’s Expectations for the Fed Chair
Trump seeks a candidate who can support lower interest rates while maintaining credibility with Wall Street and his political base. The president has repeatedly criticised Powell’s handling of monetary policy, particularly around interest rates and institutional management.
Bessent noted the need for accountability in the Fed. “Independence does not mean lack of accountability. The Fed has a special obligation to the American people because it influences their lives,” he said.
Recent controversies have also raised questions about the current Fed leadership. Powell has faced scrutiny related to renovations at Fed headquarters, and several governors and presidents have resigned or retired due to ethical concerns during his tenure.
Kevin Hassett: White House Loyalist
Kevin Hassett, 63, has been a key economic adviser and chair of the White House Council of Economic Advisers during Trump’s first term. He now heads the National Economic Council and has consistently defended Trump’s economic policies.
Kevin Hassett, Director of the National Economic Council, remains a top contender for the Fed chair. (Source: BBC)
Hassett’s alignment with the president, however, has raised concerns about his ability to act independently at the Fed. Trump recently suggested Hassett might remain in his current role, reducing his odds as the frontrunner.
In a CNBC interview this month, Hassett emphasised the importance of the Fed’s independence while noting that interest rates still had room to fall.
Kevin Warsh: Former Fed Governor
Kevin Warsh, 55, previously served as a Fed governor from 2006 to 2011 and is now a fellow at the Hoover Institution. Warsh has become the front-runner on some prediction markets, with strong ties to Trump through family connections.
Former Fed Governor Kevin Warsh has been critical of the central bank’s policies while emerging as a frontrunner. (Source: BBC)
Warsh has been critical of the Fed’s reliance on data and its balance sheet management. While historically “hawkish,” he has recently advocated for rate reductions. Analysts have questioned whether his approach aligns with conventional economic logic.
Trump has described Warsh positively, noting his understanding of interest rates and the economy, while observers suggest he could bring credibility with both investors and policymakers.
Christopher Waller: Fed Insider
Christopher Waller, 66, currently serves as a Fed governor and was nominated to the board by Trump in 2020. He recently met with the president, strengthening his position as a candidate.
Current Fed Governor Christopher Waller recently met with President Trump, boosting his chances for the top job. (Source: BBC)
Waller has highlighted the Fed’s ability to reduce interest rates further. While lacking political ties that support Hassett or Warsh, Wall Street analysts see him as a practical choice due to his experience within the central bank. Selecting Waller could also create opportunities for Trump to appoint new governors in the coming year.
Rick Rieder: BlackRock Executive
Rick Rieder, chief fixed income strategist at BlackRock, has also met with Trump and gained attention as a potential nominee. His private sector experience may appeal to markets, though some have raised concerns about his ties to global financial institutions.
Rieder could face scrutiny from MAGA supporters wary of “globalist” bankers, and divestment requirements may complicate his confirmation. Despite these considerations, he is considered a viable candidate due to his financial expertise and relative political neutrality.
Also Read: Bitcoin Falls Below $90K as Global Markets Tumble, Selloff Deepens in 2026
Timing and Senate Considerations
Trump has not set a specific date for the announcement, but Bessent suggested it may come next week. The president’s recent overseas engagements, including travel to Davos, may influence the timing.
Once a nomination is made, the Senate must confirm the candidate. Republican Senator Thom Tillis has indicated he will not advance any of Trump’s Fed picks until matters involving Powell’s DOJ subpoena are resolved. Powell has stated that the subpoena represents a “pretext” in the administration’s push for lower rates.
Investors have largely maintained calm, betting that Trump will avoid extreme actions regarding Powell. The selection of the next Fed chair will determine the central bank’s direction amid economic pressures and political scrutiny in the months ahead.
