U.S. Treasury Secretary Scott Bessent said on Thursday he is compiling a list of potential nominees to lead the Federal Reserve and expects to announce a pick by the end of 2025.
"We're putting together a very good list of candidates" to replace Fed Chair Jerome Powell and fill another upcoming vacancy on the Fed's board of governors, Bessant told CNBC in an interview.
Powell's term as chairman ends in May, and Bessant reiterated that "it would be highly unusual for Powell to stay on."
"So, there will be two seats open. I'm putting together a list for the president and the chief of staff to review. We'll be interviewing people. So, I anticipate we'll probably be making an announcement before the end of the year," Bessant said.
The Treasury secretary also cited what he described as "disagreements" within the Fed's board of governors, referring to two recent dissenting opinions on interest rate decisions.
President Donald Trump has been pressing the Fed to cut interest rates, justifying them by citing, among other things, the high interest costs the government faces when it sells bonds to finance its deficit.
In the interview, Besant questioned the rationale for maintaining current interest rates, saying he was "not sure what the rationale is for not cutting rates."
On other matters, Bessant mentioned ongoing trade negotiations with China, saying he would discuss China with Trump today and was "confident the China issue will be resolved." He expressed "great respect" for China's He Lifeng, calling him "a statesman," while noting that some technical details still needed to be worked out.
On India, Besant said the trade team was frustrated, saying India was not a "good global player" and mentioned India's relationship with Russia.
The finance minister also forecast that economic growth would accelerate in the coming months, anticipating an "acceleration of the capital expenditure boom" in the third and fourth quarters.