By Andrea Shalal and Susan Heavey
WASHINGTON, Jan 28 (Reuters) – Treasury Secretary Scott Bessent on Wednesday said he had spoken at length with President Donald Trump about the nomination of a successor for Federal Reserve Chairman Jerome Powell, saying there were still four “great” candidates in the running.
Bessent told CNBC he traveled to Iowa with Trump for a rally and then had a long discussion with him about the Fed chair nomination on the more than two-hour flight back to Washington.
Asked if he’d made a recommendation, Bessent said, “I don’t make recommendations. I give the president options and outcomes. It’s going to be the president’s decision.”
He gave no further details and said it was unclear when Trump would announce a decision, adding, “Only the president knows.” The White House had no immediate comment on the timing of Trump’s decision.
Bessent, who spoke to CNBC before Wednesday’s Fed meeting to set interest rates, said Trump had not narrowed or expanded the field of four candidates, without giving their names.
Trump has repeatedly said he expects to announce his pick soon, and last week said he was “down to one in my mind,” while saying he preferred to keep one of the top candidates – his top economic adviser Kevin Hassett – in his current post.
BlackRock’s chief bond investment manager, Rick Rieder, whose interview Trump described as “very impressive,” is now the clear favorite to succeed Powell when his term ends in May, according to prediction market Kalshi.
The other two candidates named by Trump and his top aides in recent weeks are Fed Governor Christopher Waller and former Fed Governor Kevin Warsh.
Bessent said Trump was choosing among “four great candidates.”
He said Stephen Miran, who is on leave from his job as chairman of the White House Council of Economic Advisers to serve on the Fed’s Board of Governors, could stay on in his role for now. His term had been due to end on January 31.
Miran last month said he would likely remain on the Fed board until the Senate confirms whoever Trump nominates as the next Fed chair. Miran joined the Fed in September to serve the last few months of a 14-year term after the unexpected resignation of Fed Governor Adriana Kugler, who was nominated by former President Joe Biden.
Bessent also urged the Federal Reserve to have an open mind about interest rates, adding that there were many board members who had “a false narrative” on inflation.
“I hope that they will have an open mind and see what’s coming over the next couple months,” he said.
He said strong U.S. economic growth and wage increases did not mean inflation would necessarily rise, given substantial decreases in rents.
(Reporting by Andreal Shalal and Susan Heavey; Editing by Doina Chiacu and Deepa Babington)
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