The shortlist for the successor to Jerome Powell, chair of the U.S. Federal Reserve (Fed), whose term expires in May next year, has been unveiled.
On the 27th, Scott Bessent, U.S. Treasury Secretary, told reporters aboard Air Force One that "five people have been selected as candidates for the next Fed chair," and released their names, the Wall Street Journal (WSJ) reported.
The shortlist includes Kevin Hassett, White House National Economic Council (NEC) Chairperson, Kevin Warsh, former Fed governor, Christopher Waller, Fed governor, Michelle Bowman, Fed governor (also serving as vice chair for bank supervision), and Rick Rieder, BlackRock chief investment officer (CIO) for the institutional sector of fixed income.
Among them, Waller and Bowman were directly nominated by President Trump during his first term and are viewed as aligned with the financial policy stance of the Trump administration.
Minister Bessent said he will conduct second-round interviews with them next month and report the final shortlist to President Trump right after Thanksgiving (Nov. 27).
President Trump at the same venue said he "could announce the next chair before the end of the year."
The WSJ reported that among the current shortlist, Chairperson Hassett and former Governor Warsh are being mentioned as front-runners.
Typically, the Fed chair nomination has taken place about three to four months before the incumbent's term ends, but an early announcement at year's end could affect interest rate outlooks and investor sentiment, the WSJ analyzed.
Meanwhile, the person nominated as the next chair is reportedly likely to fill the seat being vacated by Fed Governor Stephen Miran, a former economic adviser to President Trump.
Governor Miran's term ends in January next year, but he can remain on the Board until Senate confirmation is completed. Accordingly, the chair-designate is expected to be able to attend the Federal Open Market Committee (FOMC) meetings in March and April next year as a governor.