The search for the next Federal Reserve chair is continuing, with Treasury Secretary Scott Bessent taking point in meeting with several candidates on President Donald Trump’s short list.
In recent days, Bessent has met with former Fed officials Lawrence Lindsey, Kevin Warsh and James Bullard, a Treasury source told CNBC’s Steve Liesman. Lindsey and Warsh both served as governors and Bullard was president of the St. Louis Fed.
While the goal is to add one or two names to candidates Trump has already mentioned, including Warsh as well as National Economic Council Director Kevin Hassett and current Governor Christopher Waller. There is a broader a group under Bessent’s consideration that includes 11 economists, including former and current central bankers and a few market strategists remains in play.
In addition to the candidate interviews, Bessent is pushing forth his own agenda for reforming the Fed. He would like to see the central bank organically reduce the massive bond portfolio on its balance sheet, the source said. The key would to reduce the $6 trillion in holdings of Treasurys and mortgage-backed securities in way that is not disruptive to markets or the economy.
Moreover, Bessent wants to try to reduce the Fed’s economic footprint, the source said.
