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Investing.com -- U.S. Treasury Secretary Scott Bessent said Thursday he is assembling a list of potential candidates to lead the Federal Reserve, with an announcement expected before the end of 2025.
"We are putting together a very good list of candidates" to replace Fed Chair Jerome Powell and fill another upcoming vacancy on the Fed board, Bessent told CNBC in an interview.
Powell’s term as chairman concludes in May, and Bessent reiterated it "would be highly unusual for Powell to stay on."
"So there’ll be two seats opening up. I’m putting together a list for president, chief of staff to review. We’ll be interviewing people. So, you know, I would expect that we could have an announcement by the end of the year," Bessent said.
The Treasury Secretary also noted what he described as a "schism" on the Federal Reserve board, referring to two recent dissents on interest rate decisions.
President Donald Trump has consistently pressured the Fed to cut interest rates, arguing that lower rates are justified by several factors, including the high interest costs the government faces as it sells bonds to finance the deficit.
During the interview, Bessent questioned the case for maintaining current rates, stating he was "not sure what the case is for not cutting rates."
On other matters, Bessent mentioned ongoing trade negotiations with China, saying he would discuss China with Trump today and was "confident China issues will be worked out." He expressed "great respect" for China’s He Lifeng, calling him "a statesman," while noting some technical details still need resolution.
Regarding India, Bessent indicated frustration among the trade team, saying India has not been a "great global actor" and cited its ties with Russia.
The Treasury Secretary also predicted economic acceleration in the coming months, forecasting a "capital spending boom to accelerate" in the third and fourth quarters.