U.S. Treasury Secretary Scott Bessent has provided an update on when President Donald Trump may announce the next Fed Chair. This follows Trump’s statement that he may already have his pick to replace Jerome Powell, whose tenure ends next May. Crypto traders are currently betting against Trump making any announcement this year, but Kevin Hassett is the favorite to land the role if he does.
Trump Could Name Next Fed Chair Before Year-End
In an interview on FOX News, Bessent stated that the president could have an answer on who will replace Powell by Christmas. This came as he revealed the timeline for the interview process for the five shortlisted candidates.
He mentioned that they are doing another round of interviews, after which White House officials will also conduct interviews. Bessent then stated that Trump will meet the final three candidates for Fed chair probably right after Thanksgiving, and that hopefully he will have an answer before Christmas.
As CoinGape reported, President Trump stated that he thinks he already knows who he wants to replace Powell at the Fed, although he indicated that he is still keeping his options open. The final five candidates for the role are Fed Governors Christopher Waller and Michelle Bowman, Kevin Warsh, Kevin Hassett, and BlackRock’s CIO Rick Rieder.
Meanwhile, Trump again ruled Bessent out for the position, revealing that the Treasury Secretary declined the role and would prefer to stay at the Treasury. Hassett is currently the favorite to land the role among the shortlisted candidates and has stated that he will take it if Trump offers it to him.
Crypto Traders Bet Against A Trump Announcement This Year
Polymarket data shows that crypto traders are currently betting against Trump announcing the next Fed chair by year-end. There is currently a 44% chance that the president won’t make any announcement this year.
However, if Trump does make an announcement, these traders predict that there is a 27.6% chance that the president will name Kevin Hassett to replace Powell. Hassett has made it clear that he favors larger rate cuts, although he expects the Fed to lower rates by 25 basis points (bps) at the December FOMC meeting.
Meanwhile, there is a 9.7% chance that Trump will announce Chris Waller as the next Fed Chair this year, while there is an 8.3% chance that BlackRock’s CIO, Rick Rieder, will get the nod.
