Who Will Be the Next Fed Chair? Scott Bessent Confirms Final Five Candidates

U.S. Treasury Secretary Scott Bessent has confirmed the final shortlist of contenders to replace Jerome Powell. This comes as the current Fed chair is set to step down by the end of the year.

Scott Bessent Names Top Five Fed Chair Candidates

U.S. Treasury Secretary Scott Bessent revealed on CNBC the five candidates being considered to replace Federal Reserve Chair Jerome Powell. He also confirmed that President Donald Trump expects to make his final decision before the end of the year.

🚨NEW: Treasury Secretary @SecScottBessent told reporters today that 5 finalists are under consideration to replace Powell as Chair of the @federalreserve, with a decision expected by year-end.

Fed Governor Waller is among the candidates and I asked him about it last week. ⬇️ https://t.co/ea8hyk2FZS pic.twitter.com/jVeyvxJrTI

— Eleanor Terrett (@EleanorTerrett) October 27, 2025

The shortlist includes current Federal Reserve board members Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh, White House National Economic Council Director Kevin Hassett, and BlackRock executive Rick Rieder. 

Bessent, who is overseeing the interview process, said he plans to conduct another round of discussions after Thanksgiving before presenting a “good slate” of options to the president. This followed the President’s shortlist being released in September.

Trump, speaking separately to reporters, reiterated that he plans to announce the new Fed Chair by year-end. He has repeatedly criticized Powell for not cutting interest rates quickly enough.

 “We have a person who is not at all smart right now,” he said, referring to Powell’s resistance to deeper rate cuts.

Policymakers are expected to lower interest rates by 25 basis points at the upcoming October 29 meeting. The new Fed chair will fill a 14-year governor term beginning February 1, succeeding Stephen Miran, who is on unpaid leave from his position as chair of the White House Council of Economic Advisers. 

Senate confirmation will follow, where lawmakers are expected to scrutinize the nominee’s stance on inflation, employment, and central bank independence. Powell’s own tenure as Fed chair ends in May, though his term as a Fed governor runs until early 2028. 

Traders Favor Hassett, While Waller Gains Crypto Appeal

According to Polymarket, Kevin Hassett has emerged as the leading candidate, with 36% of bets, while Christopher Waller follows with 23%. Analysts suggest Hassett’s strong ties to the White House give him an advantage.

However, Waller’s influence is growing due to his openness to digital finance and financial innovation.

At the Federal Reserve Payments Conference last week, Waller proposed a new “payment account” system that could allow crypto-focused firms access to the Fed’s payment network without a full banking license.

Meanwhile, Hassett shared a hopeful tone regarding the ongoing U.S. government shutdown. He recently said the standoff could end within days, providing a potential lift for investors awaiting political clarity. He also added that firmer measures could be taken if Democrats resist compromise.