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Treasury Secretary Scott Bessent stated on Tuesday that he is completing the second round of interviews for the upcoming chairperson of the Federal Reserve, and noted that there is a “very good chance” President Donald Trump will make his decision by Christmas.
Trump has repeatedly criticized Federal Reserve Chair Jerome Powell for refusing to cut interest rates, even though Trump nominated him during his first term. Powell’s term expires in May, and he has declined to step down before then.
According to Reuters, Treasury Secretary Scott Bessent said he has narrowed the list of potential successors from roughly 11 candidates to five. Among them is White House National Economic Council Director Kevin Hassett, who is viewed as the leading contender.
“We got five very strong candidates,” Bessent said. “I think that there’s a very good chance that the president will make an announcement before Christmas. But it’s his prerogative, whether it’s … before the Christmas holidays, and New Year’s. But things are moving along very well.”
If the president does not announce his choice by Christmas, he is expected to do so before the end of the year, said the report.
Other candidates still under consideration include Federal Reserve Vice Chair for Supervision Michelle Bowman, current Fed board member Christopher Waller, former Fed governor Kevin Warsh, and Rick Rieder, chief investment officer for global fixed income at BlackRock.
The White House has pushed back on reports that Hassett — who has publicly supported cutting interest rates — is the leading candidate, emphasizing that any discussion of Federal Reserve nominees remains “speculation” until President Trump makes a formal decision.
Americans have become more bullish on the economy under Trump, meanwhile.
Consumer confidence rose by two points in July to a reading of 97.2, according to the Conference Board on Tuesday, indicating that Americans’ views on the economy have stabilized after a sharp decline in the spring.
That drop followed the announcement of sweeping tariffs by President Trump, which had raised concerns about rising prices and potential strain on the labor market after being panned by most of the media and so-called experts who were wrong about the tariffs’ effects on the economy.
Since then, confidence has rebounded somewhat. The administration has repeatedly delayed the implementation of those tariffs and announced trade agreements with seven countries, including China, the United Kingdom, and Japan, said the report.
“Consumer confidence has stabilized since May, rebounding from April’s plunge, but remains below last year’s heady levels,” said Stephanie Guichard, senior economist of global indicators, at The Conference Board.
“Tariffs remained top of mind and were mostly associated with concerns that they would lead to higher prices,” she added.
But that hasn’t happened. In fact, prices for many key commodities, including food and gasoline, have either fallen or stabilized over the past couple of months.
“Inflation has come into better balance this year — but signs of renewed price pressure are starting to emerge,” Lauren Goodwin, economist and chief market strategist at New York Life Investments, said in a note to clients on Tuesday, per CNN.
“Goods prices in categories sensitive to trade policy — such as consumer electronics, apparel, and auto parts — have started to edge higher,” she added. “Steep tariffs often create visible economic pain – disrupting supply chains and suppressing demand.”
The U.S. collected nearly $28 billion in customs duties in July—the highest monthly total of the year—according to the Treasury Department’s “Customs and Certain Excise Taxes” data. The July figures, based on data through July 25, have already exceeded June’s previous record of $27 billion.
Back in January, tariff revenues stood at approximately $7.9 billion, but by April, they had more than doubled to $16.3 billion, Fox Business added.
