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Scott Bessent has picked 11 candidates to interview for Federal Reserve chair, according to a senior Treasury official, ranging from current and former senior central bankers to colourful Wall Street figures.
The list features many names who are seen as long shots to becoming President Donald Trump’s nominee, including David Zervos, chief market strategist at Jefferies.
Former Fed governor and National Economic Council chair Larry Lindsey and BlackRock’s bond chief Rick Rieder are also candidates, the official said. Those names were first reported by CNBC.
The three front-runners to succeed Jay Powell are current National Economic Council chair Kevin Hassett and former Fed governor Kevin Warsh, along with current Fed governor Christopher Waller.
Trump has bashed Powell throughout his second term, labelling the Fed chair a “numbskull” and a “moron” over his refusal to cut interest rates. Powell’s term as chair is set to end in May 2026.
The US president wants borrowing costs cut from their current level of 4.25 to 4.5 per cent to just 1 per cent. But Powell has said Trump’s trade war has halted a rate-cutting cycle that began in 2024, over fears that it might push up prices.
A grim jobs report and a cool inflation reading for July have raised the prospect of a 0.25 percentage point cut in September, with administration officials — including Bessent — pushing for a jumbo half point move.
Other candidates who are on the list but are seen as unlikely to get the job include current Fed vice-chairs Michelle Bowman and Philip Jefferson; Lorie Logan, the head of the Dallas Fed; James Bullard, the former head of the St Louis Fed; and Marc Sumerlin, a former economic adviser to President George W Bush, who was in the race when Powell was nominated in 2017.
Bowman, a Trump appointee, backed a 0.25 percentage point cut at the Fed’s July vote, but has a background in banking supervision rather than monetary policy. Jefferson has more economics pedigree but was nominated by former US president Joe Biden.
Bullard told CNBC on Tuesday that the Fed needed to cut rates now and should be on track to lower borrowing costs by a full percentage point by the middle of next year.
This article has been updated to correct the date at which Powell’s term ends
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