US Treasury Secretary Bessent: Expect new Fed chair in early January

KEY POINTS:

• Expects new Fed chair announcement in early January
• US Supreme Court ruling on tariffs also expected in early January
• Says Warsh and Hassett both very qualified for the job
• Expects substantial drop in inflation in the first half of 2026
• US-China relations remain positive

US Treasury Secretary, Scott Bessent, spoke in a Fox Business interview and commented on the upcoming Fed chair announcement and the US Supreme Court ruling on tariffs. Both decisions are expected in early January.

Bessent also added that Warsh and Hassett are both “very very qualified” for the job, which further confirms that it’s going to be either one of them.

Warsh recently overtook Hassett as favorite following a CNBC report saying that “Hassett candidacy was running into pushback from people close to Trump”. Warsh is also seen as a better pick in Wall Street.

Whoever it’s going to be, the new Fed Chair will still have only one vote, and monetary policy decisions are made on a majority basis. It will just make the FedWatching job more interesting as traders will need to closely follow the voters’ views on economy and policy, and monitor the economic developments.

That could bring more volatility and trading opportunities as expectations will likely swing with every comment and economic report.

This article was written by Giuseppe Dellamotta at investinglive.com.