Scott Bessent reveals the final five candidates to replace Jerome Powell as Fed Chair, with Trump expected to decide by year-end.
U.S. Treasury Secretary Scott Bessent has confirmed the final shortlist of candidates to replace Jerome Powell as the next Federal Reserve Chair.
With Powell set to step down by the end of the year, President Trump is expected to make his final decision soon. The shortlist includes five prominent individuals, each with distinct backgrounds and policy stances that could shape the future direction of U.S. monetary policy.
The Final Five Candidates for Fed Chair
Scott Bessent unveiled the top five candidates to replace Jerome Powell as Fed Chair. These candidates are Christopher Waller, Michelle Bowman, Kevin Warsh, Kevin Hassett, and Rick Rieder. Bessent, who is overseeing the selection process, confirmed that President Trump aims to announce his choice by the end of 2025.
🚨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
Christopher Waller and Michelle Bowman are both current Federal Reserve board members. Kevin Warsh, a former Fed Governor, also makes the list, along with Kevin Hassett, White House National Economic Council Director. Rick Rieder, an executive at BlackRock, completes the shortlist.
Each individual brings a unique perspective on economic policy and financial regulation.
Traders and Analysts Weigh in on Potential Candidates
Traders have shown a clear preference for Kevin Hassett, with 36% of bets placed on him to become the next Fed Chair.
Christopher Waller follows with 23% of the bets. Hassett’s strong ties to the White House and his experience in economic policy give him an advantage in this race.
However, Waller has gained increasing attention due to his openness to digital finance and financial innovation. Besides, Waller’s recent proposal for a new “payment account” system that could offer crypto-focused firms access to the Fed’s payment network has drawn interest.
His approach signals a willingness to engage with the evolving landscape of digital currencies and financial technology.
Confirmation Process and Political Landscape
Once President Trump selects the new Fed Chair, the nominee will face Senate confirmation.
Lawmakers are expected to scrutinize the candidate’s stance on key issues, including inflation, employment, and the independence of the central bank. Moreover, the new chair will serve a 14-year term, beginning in February 2026.
At the same time, policymakers could lower interest rates by 25 basis points during the upcoming October 29 meeting.
Powell’s term as Fed Chair will end in May, but his role as a Fed governor runs until 2028. With political dynamics continuing to shift, the selection of a new Fed leader will have far-reaching effects on both U.S. monetary policy and the broader global financial landscape.