The United States Treasury Secretary, Scott Bessent, confirmed that he is interviewing eleven candidates to succeed Jerome Powell as head of the Fed in 2025. In statements to Fox Business, Bessent explained that the first round of interviews will conclude at the beginning of October and that he will subsequently present President Donald Trump with a shortlist of the "strongest and most promising" candidates.
He specified that between three and four names will reach the final evaluation stage.
Tensions with the current Fed leadership
Jerome Powell will leave the presidency of the Federal Reserve in May, after months of tensions with the White House over restrictive monetary policy. For Bessent, current rates are "too restrictive" and directly affect access to housing and the cost of credit. The secretary expressed surprise that Powell has not given any signals about future cuts before the end of the year, even though the market expects at least two additional quarter-point cuts in October and December.
Scott Bessent avanza en la búsqueda del sucesor de Powell en la Reserva Federal
The Trump administration has called for a more expansionary monetary policy to boost credit and economic growth. In this context, the Treasury has even questioned the cost overruns of projects linked to Powell and has denounced irregularities by Governor Lisa Cook, in an attempt to pressure the central bank.
New appointments and internal debate
Meanwhile, Trump appointed Stephen Miran, former economic adviser to his administration, as a new member of the Board of Governors to replace Adriana Kugler. Miran made his debut on the Federal Open Market Committee (FOMC) by advocating for a more aggressive rate cut—50 basis points—compared to the quarter-point cut that was ultimately adopted.
Bessent welcomed his appointment and emphasized: "President Trump's candidate for the Federal Reserve Board has said more in one week than the members appointed by the Biden administration have in their entire term."
Scott Bessent avanza en la búsqueda del sucesor de Powell en la Reserva Federal
Expectations for the end of the year
According to the Fed's most recent projections, analysts expect interest rates to be between 3.5% and 3.75% by the end of 2025.
The internal debate, however, remains open: while Powell remains cautious about lowering rates, Bessent and the White House are betting on a more expansionary monetary policy that eases financial costs for families and strengthens economic activity.
