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Treasury Secretary Scott Bessent said Tuesday he will begin interviewing candidates for Federal Reserve chair as soon as the White House whittles down what has suddenly become a crowded field.
In a CNBC “Squawk Box” interview, Bessent confirmed the race to replace current Chair Jerome Powell is between 11 candidates, an array that includes past and present central bank officials as well as economists, a White House advisor and a few Wall Street market experts.
“In terms of the interview process, we’ve announced 11 very strong candidates. I’m going to be meeting with them probably right after Labor Day, and to start bringing down the list to present to President Trump,” he said. “It’s an incredible group.”
That list is believed to contain current Governors Michelle Bowman, Philip Jefferson and Christopher Waller, Dallas Fed President Lorie Logan, White House economist Kevin Hassett and former Governor Kevin Warsh. Strategists Rick Rieder of BlackRock and David Zervos of Jefferies also are part of the group, as well as economist Marc Sumerlin, former Governor Larry Lindsey and former St. Louis Fed President James Bullard.
Though Powell’s term does not end until May 2026, the White House is keen to get the process moving as it pushes an urgent need for interest rate cuts.
Bessent repeated the administration’s desire for easing, saying it would help the moribund U.S. housing market. Sales and new building have been weak, with low inventory pushing prices higher.
“If we keep constraining home building, then what kind of inflation does that create one or two years out?” he said. “So a big cut here could facilitate a boom or a pickup in home building, which will keep prices down one two years down the road.”
The Fed does not have a policy meeting again until Sept. 16-17, where it is widely expected to approve its first quarter percentage point reduction since December 2024. Bessent said he was not concerned about a producer price index reading for July that showed the largest monthly increase in three years, as he attributed much it to a rise in portfolio fees tied to higher stock market values.
Before then, Powell on Friday will give what is likely his final keynote address at the Fed’s annual symposium in Jackson Hole, Wyoming. That speech could focus on a review the central bank does every five years of its policy, but Powell also may choose to tip the Fed’s hand on the September vote.
