Trump's Fed chair decision could come next week, Treasury Secretary Scott Bessent says

• Bessent attacked Powell on multiple fronts: attending Supreme Court arguments as a defendant in the Lisa Cook case, not meeting with prosecutors before subpoenas related to a criminal probe of Fed headquarters, and pandemic-era asset purchases that resulted in huge losses
• Trump's Fed chairman selection has been narrowed to four candidates including former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller, and BlackRock executive Rick Rieder
• Powell faces a criminal investigation for allegedly lying during congressional testimony about the Fed's $2.5 billion headquarters renovation; his term as chairman expires in May but he could remain on the board through 2028

Summary: Trump's Fed Chair Decision Expected Next Week

Treasury Secretary Scott Bessent announced that President Trump's decision on the next Federal Reserve chairman could come as soon as next week, following a selection process that began in September. The field has narrowed from 11 candidates to four finalists, all of whom have personally met with Trump. Leading contenders include former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller, and BlackRock executive Rick Rieder.

Key Developments:

Bessent launched pointed criticism against current Fed Chair Jerome Powell, accusing him of "putting his thumb on the scale" by planning to attend Supreme Court arguments related to Trump's attempt to fire Fed Governor Lisa Cook over mortgage fraud allegations. Bessent called this appearance "a mistake" that politicizes the Fed.

Additional Criticisms:

• Powell failed to meet with federal prosecutors before subpoenas were issued in a criminal investigation into the Fed's $2.5 billion headquarters renovation
• Pandemic-era asset purchases resulted in substantial losses
• Four to six senior Fed officials resigned over compliance issues

Powell faces criminal investigation for allegedly lying during congressional testimony about the Fed's headquarters project. He defended the Fed's independence, stating that criminal charge threats result from setting rates based on evidence rather than presidential preferences.

Timeline:

Powell's term as chairman expires in May 2026, though he could remain on the Fed board through 2028. Trump has repeatedly criticized Powell for not lowering interest rates quickly enough.

Market Implications:

Leadership uncertainty at the Federal Reserve raises questions about monetary policy direction and central bank independence, creating potential volatility in financial markets as investors await Trump's decision.