US Treasury Secretary Scott Bessent stated there is a "very good chance" President Trump will announce the next Federal Reserve Chair before Christmas. Current Chair Powell's term is set to end in May.
Bessent also commented that Federal Reserve governors appear inclined towards interest rate cuts. This sentiment is supported by recent economic data showing weakness in the labor market, with private payrolls falling by an average of 13,500 per week in the recent four-week period.
The combination of a potential leadership change at the Fed and weakening labor data reinforces market expectations for a continued dovish monetary policy stance.