Treasury Secretary Scott Bessent has narrowed the search for the next Federal Reserve chair down to five finalists.

And whoever gets the job won't just be making policy decisions - they'll be shaping the future of your investments, mortgage rates, and savings accounts.

The Final Five:

• Michelle Bowman - Current Fed Vice Chair for Supervision
• Christopher Waller - Current Fed Governor
• Kevin Hassett - Director of National Economic Council
• Kevin Warsh - Former Fed Governor
• Rick Rieder - BlackRock Fixed Income CIO (the surprise name)

Why This Pick Is Huge:

Jerome Powell's term ends in May, and Trump has made no secret about wanting someone who'll cut rates more aggressively.

The president already fired Fed Governor Lisa Cook (she's fighting it in court) and has repeatedly blasted the Fed for not lowering rates fast enough.

What That Means: Whoever gets this job will face massive pressure from the White House while trying to maintain the Fed's independence. That's a tightrope walk that affects every rate decision going forward.

The Bessent Criteria:

Treasury Secretary Bessent is looking for someone who:

• Is open to "new ideas" about running the Fed
• Has experience in economics, monetary policy, and banking
• Might be willing to shrink the Fed's size and power
• Could roll back tools like quantitative easing

Translation? Bessent wants someone who'll shake things up, not maintain the status quo.

Rick Rieder: The Dark Horse:

Why He's Turning Heads:

• Manages fixed income at BlackRock (one of the world's biggest investors)
• Never worked at the Fed (could be seen as a fresh perspective)
• Well-respected Wall Street analyst
• Frequent CNBC guest with strong market credibility

The Treasury officials confirmed Rieder has "impressed" Bessent. That's notable because he's the only finalist who hasn't been inside the Fed before.

The Unusual Timeline:

Here's where it gets interesting. The next Fed chair will likely be nominated as a regular Fed governor first, then promoted to chair later. Why?

Powell's seat only has two years left. But there's another seat opening in January with a full 14-year term. Smart move - it gives the new chair more staying power.

Timeline: Interviews continue through Thanksgiving, final decision possibly by January.

What This Means for Your Money:

If They Pick an Insider (Bowman/Waller):

• More continuity with current Fed policy
• Possibly slower to cut rates
• Market sees it as "safe" choice

If They Pick an Outsider (Rieder):

• More unpredictable policy shifts
• Potentially more aggressive rate cuts
• Could shake up market expectations

If They Pick a Trump Loyalist (Hassett/Warsh):

• Likely faster rate cuts
• More political pressure on the Fed
• Questions about Fed independence

The Independence Question:

This isn't just about rates. Trump's attempts to fire Lisa Cook and his constant criticism of Powell have raised serious questions about Fed independence. The Supreme Court will hear Cook's case in January.

Why It Matters: If the Fed loses its independence, markets could react badly. Investors count on the Fed making decisions based on data, not politics.

Bottom Line:

Keep an eye on this. The new Fed chair will control interest rates for years to come, affecting everything from your mortgage to your stock portfolio.

And with Trump demanding faster rate cuts while inflation concerns linger, this pick could determine whether we see smooth sailing or market turbulence ahead.

The interviews continue. The decision comes soon. Your wallet is watching.