Trump could make a decision on a new Fed chair 'before Christmas.' See who's on the short list

• President Donald Trump has narrowed down his list of potential next Federal Reserve chairs.

• Treasury Secretary Scott Bessent said Trump could make his pick before Christmas.

• Prediction markets have a new favorite, Fed Gov. Christopher Waller.

President Donald Trump is checking his list of potential Federal Reserve chairs twice.

Treasury Secretary Scott Bessent, who has been leading the search, said that Trump could name his nominee to replace Fed Chair Jerome Powell by Christmas.

"I think there's a very good chance that the president will make an announcement before Christmas," Bessent told CNBC in late November. "But it's his prerogative, whether it's before the Christmas holidays or in the new year. But I think things are moving along very well."

No matter who Trump selects, Bessent said he wants a less prominent central bank.

"I think it's time for the Fed just to move back into the background, like, it used to do, calm things down and work for the American people," Bessent said.

Powell's term expires next May, but hasn't stopped the White House from aggressively searching for his replacement.

Here are the five finalists.

Christopher Waller

Fed Gov. Christopher Waller told Fox News that he thought his most recent conversation with Bessent went well.

"I talked to Scott about 10 days ago. We had a nice, a great, meeting," Waller told Fox Business in late November.

Waller said that the White House is looking for someone with "experience." It's not clear what experience that entails, but of the reported finalists, only three have experience serving on the central bank.

"I think they are looking for someone who has merit, experience, and knows what they are doing in the job, and I think I fit that," he said.

Just before Thanksgiving, Waller dethroned White House economic advisor Kevin Hassett as the favorite of leading prediction markets. On both Polymarket and Kalshi, Waller holds a narrow edge over Hassett.

Waller, a longtime regional Fed official, was seen as a convention pick when Trump nominated him to the central bank in 2019. Simultaneously, Trump also nominated Judy Shelton, a former campaign advisor and a Fed critic. The fight over Shelton's nomination soon spilled over onto Waller's.

In December 2020, the Senate confirmed Waller 48-47, the narrowest margin for any Fed governor since 1980, per The New York Times.

In July, Waller joined Gov. Michelle Bowman (another Trump first-term pick) in opposing the Fed's decision not to cut interest rates, the first dual dissent in more than 30 years.