Bessent says interviews for new Fed chair to start around Sep 1
President Donald Trump's choice of Powell's successor is a closely watched process, after the US leader repeatedly lashed out at the independent central bank over its decisions to hold off interest rate cuts this year.
Powell's term at the helm of the Fed ends in May 2026.
Fed policymakers have approached rate cuts with caution as they monitor the effects of Trump's sweeping tariffs impacting trading partners.
Trump has made no secret of his disdain, openly calling Powell a 'numbskull' and 'moron' in recent months.
For now, Bessent told CNBC that there are 11 'very strong candidates' being considered for Powell's position.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
'I'm going to be meeting with them, probably right before, right after Labor Day, and to start bringing down the list to present to President Trump,' he added on Tuesday.
'It's an incredible group. It's people who are at the Fed now, have been at the Fed and private sector, so I'm looking forward to meeting all of them with a very open mind,' Bessent said.
While the Treasury chief did not specify who was on the list, media reports note that the names include current Fed governors Michelle Bowman and Christopher Waller.
Others include former Fed governor Kevin Warsh and National Economic Council director Kevin Hassett.
Also reportedly under consideration are James Bullard, a former regional Fed president and Marc Sumerlin, former economic adviser to President George W Bush.
Bessent himself was earlier viewed as a potential choice by the president, but Trump said earlier this month that Bessent was no longer in the running given that he wants to remain where he is.
The Fed's next policy meeting is in mid-September.
Investors are keeping a keen eye on Powell's remarks Friday at an annual central bankers' gathering in Jackson Hole, Wyoming, for hints of whether further rate cuts are on the way. AFP
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
29 minutes ago
- Straits Times
Wall Street mostly declines as tech names pull back from highs
Sign up now: Get ST's newsletters delivered to your inbox Traders working on the floor of the New York Stock Exchange, in New York City, on Aug 19. NEW YORK - Wall Streets stocks finished mostly lower on Aug 19, dragged down by tech companies retreating from record highs, while a Home Depot earnings report lifted retailers. The broad-based S&P 500 Index fell 0.6 per cent to 6,411.37, while the tech-focused Nasdaq Composite Index fell 1.5 per cent to 21,314.95. The Dow Jones Industrial Average rose a marginal 10.5 points to 44,922.27, pulling back after hitting a record high on the back of Home Depot's quarterly report. Shares of the home improvement company rose 3.2 per cent after slightly missing analyst expectations but maintaining its full-year forecast. Target, Walmart and Lowes report later in the week, with all eyes on potential impacts on consumers from US President Donald Trump's tariffs. 'The consumer makes up two thirds of the economy and retail earnings give you a good sense of the strength of the consumer,' Mr Adam Sarhan, of 50 Park Investments, said. AI chip-maker Nvidia led a slew of tech stocks facing pressure, falling 3.5 per cent, while Advance Micro Devices dropped 5.4 per cent and software provider Palantir slid over 9 per cent. Microsoft fell 1.4 per cent. Shares of Facebook-parent Meta also fell over 2 per cent after the New York Times reported a major shakeup was forthcoming in its AI division. 'Considerable losses in mega-cap tech names have the S&P 500 and Nasdaq Composite facing pressure,' according to analysts. Mr Sarhan said that after hitting all time highs last week, 'the market is pulling back as investors digest a very big... move up.' Traders are also anxiously awaiting Federal Reserve chairman Jerome Powell's remarks on Aug 22 at the Jackson Hole financial gathering, where he may offer clues as to how recent inflation and jobs data impact decision making on rate cuts in September. Mr Powell is expected to be 'cautious' after economic data 'has gotten weaker' since his last remarks, said Mr Sarhan. Traders currently price in an over 80 per cent likelihood that the Fed will cut, after resisting intense pressure from Mr Trump and holding rates steady since last December. 'Just about everybody is saying that the Fed should cut rates... so now it's just a matter of when,' added Mr Sarhan. Policymakers have been cautiously monitoring the effects of Mr Trump's wide-ranging tariffs on the world's biggest economy. The Aug 19 decline followed a tepid session a day earlier, when stocks ended mostly flat as traders awaited the outcome of high-level talks at the White House on Russia's war in Ukraine. AFP
Straits Times
2 hours ago
- Straits Times
After Putin call, Trump rang Hungary's Orban over Ukraine's EU membership
Sign up now: Get ST's newsletters delivered to your inbox Hungarian prime minister Viktor Orban (right) is a close ally of US President Donald Trump (left), while also being a constant thorn in the EU's side and supportive of Russia. WASHINGTON – US President Donald Trump called Viktor Orban on Aug 18 following talks with Ukrainian President Volodymyr Zelensky and European leaders to discuss why the Hungarian prime minister was blocking Ukraine's accession talks with the European Union, according to people familiar with the matter. The call grew out of discussions among Mr Trump and a contingent of European leaders gathered at the White House to discuss ways to end Russia's war on Ukraine. At a certain point they asked Mr Trump to use his influence on Mr Orban to pressure the right-wing populist to drop his opposition to Ukraine's EU membership bid, the people said. Ukraine has been seeking to join the political and economic bloc as part of a package of security guarantees designed to keep Russia from additional territorial grabs if a truce is implemented to end the war, which has stretched over three years. On the call with Mr Trump, Hungary also expressed interest in hosting a next round of talks between Russian President Vladimir Putin and Mr Zelensky. Following Mr Trump's discussions on Aug 18, the US president announced that he was seeking a leader-level summit between Russia and Ukraine, followed by a trilateral meeting that he would also attend. The timing and location for that are still unclear. The people who detailed the conversation between Mr Trump and Mr Orban asked not to be named discussing private deliberations. Mr Orban, a close Trump ally, is widely seen as an inspiration for the US president's Make America Great Again movement and right-wing populists around the world. He's been a constant thorn in the EU's side, taking his country in an authoritarian direction. Hungary has consistently given Russia diplomatic cover and protection against EU sanctions, while obstructing aid to Ukraine. Top stories Swipe. Select. Stay informed. Singapore NDP 2026 to be held at National Stadium to accommodate more Singaporeans Singapore Girl, 14, among 3 injured after minibus falls into Bukit Panjang canal Singapore Man to be charged after allegedly slashing another man with Swiss knife at City Plaza Singapore Hyflux founder Olivia Lum and ex-CFO gave input to 'play down' energy component of Tuaspring project Singapore FairPrice apologises after worm found in salmon bought from Bedok North outlet Singapore What led to Changi Airport runway incident involving 2 China Eastern Airlines planes in Aug 2024 Singapore Married man who offered cash to 12-year-old girl for sexual acts gets 19 months' jail The spokesperson for Mr Orban's office did not immediately respond to a request for comment. The call occurred after hours of discussion between Mr Trump, Mr Zelensky and a half dozen European leaders who had rushed to the Ukrainian leader's side in Washington to make the case for a unified approach to the peace process. The gathering occurred days after the US president's own meeting last week with Mr Putin in Alaska. It was in that context that Mr Trump made two separate calls. One was to Mr Putin. The second one, reported for the first time now, was to Mr Orban and came after EU leaders held an additional, unscheduled meeting in the Oval Office. Mr Orban didn't confirm the call, and White House press secretary Karoline Leavitt declined on Aug 19 to say whether Budapest was under consideration to host the Putin-Zelensky summit. Multiple locations are being eyed for the meeting. On Aug 19, Mr Orban took to Facebook and posted a message that indicates he heard the request on EU membership but didn't plan to budge. 'Ukraine's membership in the European Union does not provide any security guarantees,' he said. 'Therefore, linking membership with security guarantees is unnecessary and dangerous.' BLOOMBERG
Straits Times
3 hours ago
- Straits Times
Bessent says US tariff revenues to rise ‘substantially,' focus on reducing debt
Sign up now: Get ST's newsletters delivered to your inbox Treasury Secretary Scott Bessent expects to substantially revise upward his earlier estimate of US$300 billion (S$3.8 billion) in revenues from the tariffs. WASHINGTON - US Treasury Secretary Scott Bessent said he expects a big jump in revenues from sweeping tariffs imposed by President Donald Trump, and said the money would be used first to start paying down the federal debt, not to give rebate cheques to Americans. Mr Bessent, speaking in an interview on CNBC's Squawk Box, said he expected to substantially revise upward his earlier estimate of US$300 billion (S$3.8 billion) in revenues from the tariffs, but declined to be more specific. Mr Bessent said he had not spoken with Mr Trump about the idea of using funds from the tariffs to create a dividend for Americans, but stressed that both of them were 'laser-focused' on paying down the debt. 'I've been saying that tariff revenue could be US$300 billion this year. I'm going to have to revise that up substantially,' Mr Bessent said. 'We're going to bring down the deficit to GDP. We'll start paying down the debt, and then at that point that can be used as an offset to the American people.' The US economy could return to the 'good, low-inflationary growth' of the 1990s, Mr Bessent said, but he blamed higher interest rates for problems plaguing some pockets of the economy, singling out housing and lower-income households with high credit card debt. A cut in the Federal Reserve's key interest rate - which Mr Trump has continually pressed for - could help facilitate a boom or pickup in home building, which would help keep prices down in one to two years, he said. The US Census Bureau on Aug 19 reported a small increase in groundbreaking for single-family homes and permits for future construction in July, even as high mortgage rates and economic uncertainty continued to hamper home purchases. Top stories Swipe. Select. Stay informed. Singapore NDP 2026 to be held at National Stadium to accommodate more Singaporeans Singapore Girl, 14, among 3 injured after minibus falls into Bukit Panjang canal Singapore Man to be charged after allegedly slashing another man with Swiss knife at City Plaza Singapore Hyflux founder Olivia Lum and ex-CFO gave input to 'play down' energy component of Tuaspring project Singapore FairPrice apologises after worm found in salmon bought from Bedok North outlet Singapore What led to Changi Airport runway incident involving 2 China Eastern Airlines planes in Aug 2024 Singapore Married man who offered cash to 12-year-old girl for sexual acts gets 19 months' jail Mr Trump's wide-ranging import tariffs have kept the Federal Reserve from lowering interest rates this year, with most central bank policymakers wary of easing borrowing costs until they have more confidence the levies will not rekindle inflation, which has yet to return to the Fed's 2 per cent target. Recent indications of softening in the job market, however, have largely convinced investors that the Fed will cut rates by a quarter of a percentage point when it meets in mid-September. That expectation has helped bring down mortgage rates in recent weeks. Mr Bessent has previously said a 50-basis-point cut in rates was warranted. REUTERS
