US president to announce new Fed chief early in the year, Hassett is the favourite

US President Donald Trump has announced that he will unveil his nominee to replace Jerome Powell as head of the Federal Reserve early next year.

Although he claims to have clarity, he has refused to confirm whether it will be his economic adviser Kevin Hassett, who frequently appears in the media and supports Trump's economic policies, including lowering interest rates.

Other candidates in play include Fed governors Michelle Bowman and Christopher Waller, former member Kevin Warsh and BlackRock executive Rick Rieder. Treasury Secretary Scott Bessent has already had two rounds of interviews with them and is expected to present a list of finalists.

Trump prefers a candidate who would continue the policy of low rates even as the economy recovers and inflation stays above the targeted 2 percent.

(reuters, mja)