Fed Chair Shortlist Down to Five Candidates

TLDR

Table of Contents

Treasury Secretary Scott Bessent narrows the list to five Fed Chair candidates.
Pro-crypto figures, including Chris Waller, are believed to be on the list.
The selection process will continue after Bessent’s Asia trip.
Market predicts Kevin Hassett as the frontrunner for the role.

U.S. Treasury Secretary Scott Bessent recently provided an update on the ongoing process to select the next Federal Reserve Chair. According to Bessent, the list of potential candidates has now been narrowed down to five names, with key figures believed to include pro-crypto individuals like Fed Governor Chris Waller. This announcement comes ahead of further interviews set to take place after an upcoming trip to Asia.

Narrowing Down the Field

Bessent shared details at CNBC’s Invest in America Forum, revealing that interviews for the role of Fed Chair would resume after the Treasury Secretary’s trip. He noted that, following these additional interviews, he expects to present three to four final candidates to U.S. President Donald Trump. The decision is expected to be made after Thanksgiving. This process marks the next phase in selecting Jerome Powell’s successor as the head of the U.S. Federal Reserve.

The initial pool of 11 candidates, reported by CoinGape, included Fed officials such as Michelle Bowman, Chris Waller, and Philip Jefferson. However, the field has since been reduced to just five contenders. Although Bessent did not disclose the specific names, the decision-making process is moving forward with a clearer shortlist.

Criteria for Selection and Key Considerations

One of the main criteria for the next Fed Chair, according to Bessent, is an “open mind” on monetary policy. This factor is particularly important following President Trump’s criticism of Jerome Powell’s earlier decisions regarding interest rate cuts. The Treasury Secretary emphasized the importance of flexibility when it comes to policy adjustments, especially in the current economic environment. Bessent’s comments suggest that the administration is seeking a candidate who is open to exploring a range of policy options.

In addition to the stated criteria, the Treasury Secretary explained that Trump would take input from hundreds of individuals before making the final choice. This wide consultation process reflects the importance of selecting a leader who aligns with both the administration’s priorities and broader economic goals.

Market Predictions for the Next Fed Chair

While Bessent’s remarks signal progress in the selection process, market participants are also speculating about potential outcomes. According to Polymarket data, economist Kevin Hassett is currently seen as the frontrunner for the role, with a 35% chance of being nominated by Trump.

Other potential candidates include Kevin Warsh, with a 19% chance, and Chris Waller, at 13%. However, Polymarket traders also suggest that there is a 55% chance that no nomination will occur this year.

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