It is no secret that President Donald Trump is not a fan of Federal Reserve Chairman Jerome Powell, particularly his glacial pace in lowering the nation's elevated interest rates, which the president believes has hampered the success of his policy agenda.

Powell's term doesn't expire until May 2026, but Treasury Secretary Scott Bessent just revealed that there's a "very good chance" that Trump will publicly name the outgoing chairman's replacement before the end of this year, according to CNBC.

Bessent likely knows better than anyone the status of Trump's quest for a new head of the Fed, as the secretary was tasked by the president with leading the search for qualified candidates to succeed Powell.

Powell's replacement could be named "before Christmas"

In a Tuesday appearance on CNBC, Secretary Bessent shared that he still had one more interview to conduct with a potential nominee to be the next chair of the Federal Reserve, and thus was unwilling to speculate yet about who President Trump might select for the influential and powerful position.

"I think there’s a very good chance that the president will make an announcement before Christmas," Bessent said. "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."

The secretary also referenced a humorous remark recently made by the president that implied that he himself was at risk of being terminated if he didn't do more to lower interest rates, and explained, "If you were in the room, he was joking. We’ve gotten to this point where monetary policy has gotten very complicated, and it’s more than just cutting rates."

"I think we’ve got to kind of simplify things," Bessent further said of his vision for reducing the outsized influence of the 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."

Speculation about Fed chair finalists

CNBC noted that while Bessent declined to identify who was under consideration to be the next chair of the Federal Reserve, unnamed sources have shared some of the names that are believed to be finalists for the prime position.

That includes National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, BlackRock executive Rick Rieder, and current Fed Governors Christopher Waller and Michelle Bowman, with some sources pointing to Hassett as the frontrunner of that group.

However, White House spokesman Kush Desai downplayed those claims and said, "Until an announcement is made by President Trump, discussion about Fed nominations is speculation."

Trump would "love to fire" Powell before his term expires

Since retaking office in January, President Trump has been repeatedly critical of Fed Chair Powell on his Truth Social account, and has frequently floated the idea of firing Powell before his term expires next May.

Fortune reported that the president even seemed to jokingly hold Secretary Bessent responsible for Powell's shortcomings during an event last week, when he praised the job done thus far by the secretary, but added, "The only thing Scott’s blowing it on is the Fed, because the Fed, the rates are too high, Scott, and if you don’t get it fixed fast, I’m going to fire your ass."

As for Powell, Trump used the U.S.-Saudi Investment Forum as an opportunity to share how he'd "love to fire his ass" for being "grossly incompetent," not just in terms of dragging his feet on interest rates but also for overseeing an overbudget renovation of the Federal Reserve building.

He has refrained from an impulsive firing of Powell, however, in large part because of the pleas on Powell's behalf from Bessent and others, who've cautioned that it would be wiser to let him complete his term than risk the inevitable legal challenges that would immediately follow a premature termination.