With Jerome Powell's term ending in May, several candidates are in the running to become the next Federal Reserve chair.

By Saqib Iqbal Ahmed NEW YORK (Reuters) -Beneath the U.S. bond markets' composure around the prospect of White House economic adviser Kevin Hassett becoming the next Federal Reserve chair lies a niggling worry that his bias for interest rate cuts will undermine the dollar.

The stock market faces significant challenges in the near term, including high valuations, a weakening economy, and dismal consumer sentiment.

At a D.C. forum, Trump said Fed Chair Jerome Powell has “mental problems" and should be fired, criticizing the central bank for keeping rates high.

Federal Reserve policymakers are split over whether they should continue cutting interest rates, ending the long stretch of consensus that has defined Chair Jerome Powell’s leadership of the central bank.

In late September, Fed Chair Powell delivered a speech in Rhode Island, where he was questioned about the variables the Fed's Board of Governors considers when making monetary policy decisions. In particular, he was asked if movements in the stock market factor into the central bank's decision-making process.

Bessent is nearing the end of selecting candidates to recommend to President Donald Trump to replace Powell, whose term expires in May.

Treasury Secretary Scott Bessent said Tuesday that President Trump will likely announce his pick for the next chair of the Federal Reserve before Christmas. “I think there’s a very good chance

Powell, who has butted heads with Trump over lowering interest rates, will serve until May 2026. His successor could be named as early as December.

U.S. Treasury Secretary Scott Bessent said on Tuesday he was concluding a second round of interviews later in the day for a new U.S. Federal Reserve leader, and there was a good chance President Donald Trump would announce his pick before Christmas.

Gold and silver extended their upward trajectory on Friday, lifted by strong international cues and rising confidence that the US Federal Reserve may move ahead with a rate cut next month. The bullion market experienced renewed vigour as investors responded to softening economic indicators and signals from Fed officials.