Bessent: A candidate for Federal Reserve Chair may be selected before Christmas; I don't like the wording of this rate cut.
The second round of interviews for the Federal Reserve Chairman is about to begin.
The second round of interviews for the Federal Reserve Chair is about to begin.
Written by: Bu Shuqing
Source: Wallstreetcn
On Thursday local time, U.S. Treasury Secretary Bessent stated that the second round of interviews for the Federal Reserve Chair is about to begin.
It is conceivable that we could select a candidate for the Federal Reserve Chair before Christmas.
According to a previous article by Wallstreetcn, the list of candidates for the Federal Reserve Chair has been narrowed down to five people. They are: current Federal Reserve Board members Christopher Waller and Michelle Bowman, former Federal Reserve Board member Kevin Warsh, White House National Economic Council Director Kevin Hassett, and BlackRock Inc. executive Rick Rieder.
Bessent expressed appreciation for the Federal Reserve's 25 basis point rate cut, but said she "did not like its wording." At the press conference following Wednesday's rate decision, Powell sent a hawkish signal, stating that inflation still faces upward pressure in the short term, employment faces downside risks, and the current situation is quite challenging. The committee remains highly divided on whether to cut rates again in December, and a rate cut is not a foregone conclusion.
Five Candidates Competing for the Federal Reserve Chair
This five-person list includes senior figures from within the Federal Reserve, the White House, and Wall Street. Bessent herself is leading the interview process for this selection.
Christopher Waller and Michelle Bowman, both on the list, are current members of the Federal Reserve Board, with extensive experience within the central banking system. Kevin Warsh previously served as a Federal Reserve Board member and played an important role during the financial crisis. White House National Economic Council Director Kevin Hassett represents a candidate from the executive branch of government. The final candidate is Rick Rieder, an executive from asset management giant BlackRock, who will bring an important market perspective to the selection.
In addition, President Trump reiterated on Monday that he does not expect Treasury Secretary Bessent herself to leave her current position to take over the Federal Reserve.
The timeframe for the selection process has become very clear. Bessent stated that after conducting more interviews, she plans to submit the final list of candidates to the President after Thanksgiving.
Trump has publicly set a deadline to make a decision by the end of the year. On Monday, in a speech to the media, Trump once again criticized current Chair Powell, whom he personally appointed, saying he is "not smart at all," and accused Powell of failing to cut rates significantly, thereby dragging down economic growth.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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