After a demanding selection process that included multiple interviews — some stretching beyond two hours — Treasury Secretary Scott Bessent has narrowed the shortlist for the next Federal Reserve chair from eleven names down to five. The final nominee could be sent to the Fed by January, though not necessarily as the new chair at first.

According to senior Treasury officials, the remaining candidates include Vice Chair for Supervision Michelle Bowman, Fed Governor Christopher Waller, former National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and Rick Rieder, Chief Investment Officer for Fixed Income at BlackRock.

In the coming weeks, the Treasury Department will conduct another round of in-depth interviews with all five contenders. These sessions will be led personally by Bessent and joined by two senior Treasury officials and two senior White House advisers.

However, the process may extend beyond Thanksgiving, as Bessent will first attend the World Bank and IMF meetings in Washington, followed by an extended trip to Asia alongside President Donald Trump. Once those commitments conclude, Bessent intends to submit a final, trimmed-down list to the president, who will make the ultimate choice.

Officials familiar with the plan suggested that the selected individual may initially be nominated as a Fed governor before being promoted to chair. This approach stems from the current situation at the Federal Reserve: outgoing Chair Jerome Powell’s term ends in May, but his governor seat carries only two years remaining. Meanwhile, another seat — formerly held by Adriana Kugler and now occupied by Stephen Miran — expires in January, offering a full 14-year term that could serve as the foundation for the next chair’s appointment. Still, officials emphasized that no final decision on this sequence has been made.

The president has already identified Warsh, Hassett, and Waller as finalists, meaning that only Rieder and Bowman are newly recommended names added to the official shortlist.

Compared with previous administrations, the Trump administration’s approach has been unusually transparent. It has publicly released candidate names throughout the selection process, even as the field narrows. At the same time, President Trump has continued to openly criticize the Federal Reserve, repeatedly calling for deeper interest rate cuts. His administration’s actions — including the controversial dismissal of Fed Governor Lisa Cook over disputed mortgage fraud allegations — have heightened scrutiny over the independence of the central bank.

Cook’s removal was halted by lower courts, and the Supreme Court is scheduled to hear the case in January. The episode has intensified concerns about the administration’s influence over the Fed and placed additional significance on who will ultimately take over as chair.

Rieder’s Rising Appeal

While no clear frontrunner has emerged, officials confirmed that Rick Rieder has made a strong impression on Bessent. Known for his deep understanding of bond markets and frequent commentary on CNBC, Rieder has long been a respected figure in the financial world. His insights into monetary policy and the fixed income landscape are widely followed, and his leadership at BlackRock is seen as a major asset. Interestingly, Rieder stands out among the five candidates as the only one who has never served at the Federal Reserve — a detail that some view as a positive signal for fresh thinking.

Treasury insiders revealed that Bessent is seeking a candidate who demonstrates openness to new approaches in monetary policy while possessing a solid foundation in economics, banking regulation, and institutional management. His vision aligns with the critiques he outlined in a recent essay, where he argued that the Fed has become too large and has drifted from its original mission.

Bessent’s perspective suggests that he may favor a leader willing to streamline the central bank’s operations and scale back its reliance on unconventional tools such as quantitative easing.

As the selection process enters its final phase, all eyes remain on Washington. The outcome will not only determine the direction of the Federal Reserve in the coming years but could also signal how the Trump administration envisions the balance between political authority and central bank independence — a balance that may shape U.S. economic policy for a generation.