US Treasury Secretary: "Next Fed Chair Decision Could Come as Early as Next Week"

"Powell's Attendance at Supreme Court Hearing on Lisa Cook Is a Mistake"

Scott Bessent, U.S. Secretary of the Treasury, predicted that President Donald Trump could announce his nominee for the next Federal Reserve (Fed) Chair as early as next week.

Scott Bessent, U.S. Secretary of the Treasury. Photo by AP Yonhap News

While attending the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, Secretary Bessent said in an interview with CNBC on January 20 (local time), "The President will likely make a decision on the next Fed Chair as early as next week." He added, "We have had extensive discussions on this matter. The process has been underway since last September, and there were 11 very strong candidates. Now, the list has been narrowed down to four. President Trump has met all of them personally, and a decision will be made soon."

The four final candidates mentioned by Secretary Bessent appear to be Kevin Hassett, Chairman of the White House National Economic Council; Kevin Warsh, former Fed Governor; and current Fed Governors Christopher Waller and Michelle Bowman. However, regarding Chairman Hassett, who was considered the most likely candidate, President Trump recently stated, "I actually want to keep Hassett in his current role as Chairman of the White House National Economic Council. I could lose Hassett. That is a serious concern for me."

In the interview, Secretary Bessent also commented on current Fed Chair Jerome Powell's decision to attend the U.S. Supreme Court oral arguments on January 21 regarding the case involving Fed Governor Lisa Cook, who, like him, has faced pressure from President Trump to step down. He said, "I actually think that's a mistake." He continued, "If you don't want to politicize the Fed, it is really a mistake for the Fed Chair to sit there (at the Supreme Court) and attempt to make an unfair intervention."

Previously, President Trump claimed that Governor Cook had committed mortgage fraud and notified her of her dismissal in August of last year. In response, Cook filed a lawsuit and won favorable rulings in both the first and second trials. The case is now under review by the Supreme Court following an appeal by the Trump administration.