Washington: US Treasury Secretary Scott Bessent announced on Tuesday that President Donald Trump might reveal a new chairman for the US Federal Reserve before the Christmas holidays.

According to Anadolu Agency, Bessent expressed optimism about the timeline during an interview with CNBC, stating, "I think there's a very good chance that the president will make an announcement before Christmas." He further emphasized that the final decision lies with Trump, who could choose to announce either before Christmas or in the new year. Bessent highlighted that the selection process is progressing smoothly.

The term of the current Fed Chair, Jerome Powell, concludes in May. However, Powell is anticipated to face significant challenges, especially with the Federal Open Market Committee recently showing a split over the need for further rate cuts.

Bessent revealed that he would conduct the final round of interviews on Tuesday, narrowing down the selection to five strong candidates who have left a positive impression. He underscored that the Federal Reserve has evolved beyond merely setting monetary policy and now requires leadership that can focus on safeguarding the American economy and meeting inflation and employment objectives.

Bessent remarked, "I think it's time for the Fed just to move back into the background, like, it used to do, calm things down and work for the American people."

Last month, Bessent identified the five potential candidates under consideration: White House National Economic Council Director Kevin Hassett, Fed Vice Chair for Oversight Michelle Bowman, Fed Board Member Christopher Waller, former Fed Board Member Kevin Warsh, and Rick Rieder, a senior executive at asset management firm BlackRock. He plans to present his recommendations to President Trump shortly after Thanksgiving.