Trump expects to make a decision by year-end as Fed chair candidate locked in

With current Federal Reserve Chairman Jerome Powell's term coming to an end, the search for the next chair has entered its final stages. Treasury Secretary Bensoner reportedly told the media aboard Air Force One on Monday that the field of candidates for the Fed chair has been narrowed to five: current Fed Governors Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh, White House National Economic Council Director Kevin Hassett, and BlackRock Inc. executive Rick Rieder. Bensoner revealed that he plans to conduct another round of interviews and hopes to submit a "strong list of candidates" to President Trump after the Thanksgiving holiday. Trump himself confirmed to the media that he expects to make a final decision on his nominee before the end of the year. This development comes as the Federal Reserve is about to hold its policy meeting. The market generally expects the Federal Open Market Committee to cut interest rates by another 25 basis points at its two-day meeting, which concludes on October 29th. The selection of the next Federal Reserve Chair is crucial for investors, as it will directly impact the future direction of U.S. monetary policy and the central bank's independence. The five-person slate, confirmed by Treasury Secretary Benson, includes veterans from the Federal Reserve, the White House, and Wall Street. Benson is leading the interview process for the nomination. Christopher Waller and Michelle Bowman are both current members of the Federal Reserve Board of Governors and have extensive experience within the central bank system. Kevin Warsh, a former Federal Reserve Governor, played a key role during the financial crisis. Kevin Hassett, Director of the White House National Economic Council, represents the Executive Branch. Finally, Rick Rieder, a senior executive at asset management giant BlackRock, will bring important market perspectives to the selection process. Separately, President Trump reiterated on Monday that he does not expect Treasury Secretary Bensoner to leave his current position to run the Federal Reserve. The timeframe for the selection process has become clearer. Bensoner said he plans to submit a final list of candidates to the president after Thanksgiving, following additional interviews. Trump, in turn, has publicly set a year-end deadline for a decision. Speaking to the media on Monday, Trump again criticized the current Chair, Jerome Powell, whom he personally appointed, calling him "not smart at all" and blaming him for slowing economic growth by failing to significantly cut interest rates. Expectations of a rate cut are key. His criticism of the current Chair is consistent with Trump's long-standing public pressure on monetary policy. Before Fed policymakers resumed rate cuts, Trump had said he wanted the central bank to reduce rates by three percentage points. Currently, the market generally expects the Federal Reserve to announce a 25 basis point interest rate cut at this week's meeting, which would mark the second consecutive such action. Against this backdrop, the selection of the new chairman not only affects the Fed's future interest rate path but also its policy independence in the face of political pressure, a core issue closely watched by investors. According to available information, Powell's term as Fed Chairman will end in May of next year. The nomination of the next chairman will likely be combined with the appointment of a 14-year Fed Board member, which will become vacant in early 2026.