Treasury Secretary Scott Bessent joins 'Squawk Box' to discuss the state of U.S. trade negotiations amid the looming August 1st tariff deadline, the Fed's inflation fight, candidates to replace Fed Chair Powell, and more.

Washington

A senior official has stated that an announcement on the next Federal Reserve chair is expected by the end of the year, as both Chair Jerome Powell's term and another board seat are set to expire in the coming months. The official confirmed that a list of candidates is being prepared for review, with interviews planned as part of the selection process.

Recent economic data, including a decline in the Personal Consumption Expenditures (PCE) index, was discussed as part of the broader context for the Fed's decision-making. The conversation also noted the rarity of recent dissenting votes within the Fed and emphasized the importance of choosing a chair who will act in the best interest of the American economy.

Bessent: Expect an announcement on the next Fed chair by end of year

I mean, one of the best things in the report yesterday, the PCE, two and a half percent, that's almost where the Fed wants it to be, versus three and a half, the previous three and a half percent. So that's down. But you understand, Mr. Secretary, the more that the president or the administration crows about the strength of the economy, that just sort of gives, I don't know, it gives Jay Powell more rationale not to cut at this point. But when you throw in the PCE, along with maybe the average of the two quarters at 1.2, I think it makes it much more compelling. We had a couple of dissents. We haven't had that, two of them, since 1993. Well, I also think, well, I know Chair Powell said at the ECB annual conference in Portugal that the Fed would have been cutting if it weren't for tariffs. And, Joe, to your point, we haven't seen any inflation and PCE is quite nascent. So I'm not sure what the case is here. But at this point, you figure, when will we hear? That's a good one. So he makes it till May, Jay Powell. Let's assume that. It's not unusual to see an appointment announced, I don't know, well before then. Do you have any idea on when we might hear what the president is thinking in terms of Chair Powell's replacement? I do. I'm going to be, I'm going to be, sure, Joe, if you could just lean forward, I'll tell you a little. Oh, that's Connie Chung, whispered in my ear. So we are putting together a very good list of candidates. And remember, there are going to be two seats opening up. Governor Kugler will be leaving in, I can't remember whether it's January, February, Chair Powell in May. So there will be two seats opening up. I'm putting together a list for president, chief of staff to review. We'll be interviewing people. So I would expect that we could have an announcement by the end of the year. Is Powell definitely leaving? Because even though his chairmanship is up, his seat, I think, extends a little longer. His seat extends for two years. Two more years. Two years. It would be highly unusual for a chair to stay on. And you're helping with the search, obviously. We shouldn't read into it any, like, Dick Cheney type stuff, should we, Mr. Secretary? Dick Cheney looking for a vice president, and then, lo and behold. As I keep saying, I think I have. He likes his job better. He does. He says the food's better at the Fed, though. He might be able to keep that job and have the other job. The food is better at the Fed, and I can tell you, the Treasury Building, we run it very well. We keep it in good shape. We don't do any major building projects. We do things as needed. And it's a great historical building. Mr. Secretary, I have one, actually, Fed question. Do you think that the Fed chair, because you do have to have the whole board kind of with you, how, I mean, could you imagine actually putting somebody in who has views that are otherwise different than the rest of the group and is therefore unable to effectuate the changes that perhaps the president would be pursuing? I think, Andrew, that we want the person who's going to do what is best for the American people and for the economy. And as Joe said, we had the first two dissents for several decades, so it looks like there's already a schism in the board, so there would be two more voters. We would have a majority of the board, but, of course, then there are the regional governors who rotate their voting status.

The announcement comes as international pressure mounts on Israel over the war in Gaza and the deepening humanitarian crisis in the Palestinian enclave.

Ljubljana

Middle East Conflict

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New York

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Kyiv

Ukraine Invasion

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Ottawa

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Jerusalem

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Rio de Janeiro

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Okinawa

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Prime Minister Mark Carney announced that Canada will recognize a Palestinian state later this year if the Palestinian Authority, which governs parts of the West Bank, meets certain conditions.

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Australia said on Wednesday (July 30) it will add YouTube to sites covered by its world-first ban on social media for teenagers, reversing an earlier decision to exempt the Alphabet-owned video-sharing site and potentially setting up a legal challenge.

Canberra

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President Donald Trump said on Wednesday (July 30) the United States will impose a 25% tariff on goods imported from India, as well as an unspecified penalty for buying Russian weapons and oil, on Aug. 1.

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Mourners flooded the streets of Birmingham to celebrate the life of rock-and-roll legend Ozzy Osbourne during his funeral procession in the United Kingdom. Mark Savage, a music reporter at the BBC, a CBS News partner, joins with more details.

Birmingham

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U.S. President Donald Trump told reporters before departing from Scotland that Jeffrey Epstein poached workers from his Mar-a-Lago spa. Trump mentioned Virginia Giuffre, one of Epstein's most vocal accusers, in his latest remarks.

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Owdeh Hathaleen, a 31-year‑old Palestinian activist, teacher, and filmmaker behind the Oscar-winning documentary No Other Land, was shot dead by an Israeli settler near the village of Umm al‑Khair in the South Hebron Hills.

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A powerful magnitude 8.8 earthquake off Russia's Far Eastern Kamchatka Peninsula triggered tsunami waves of up to 16 feet nearby, and sparked evacuation orders in Japan, Hawaii and across the Pacific on Wednesday (July 30).

Hawaii

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The U.N. General Assembly brought high-level officials together to promote a two-state solution to the decades-old Israel-Palestinian conflict. Israel and the United States are boycotting the two-day meeting, co-chaired by the foreign ministers of France and Saudi Arabia

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With numerous countries facing an Aug. 1 trade agreement deadline, officials in the Trump administration say China could get an extension while negotiations continue.

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Police say the man who shot and killed four people in a New York City office building before he took his own life had a "documented mental health history." Mayor Eric Adams says he may have been targeting the National Football League (NFL).

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Jeffrey Epstein-associate Ghislaine Maxwell is offering to testify before Congress in exchange for concessions like full immunity. CBS News Department of Justice reporter Jake Rosen has more.

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Prime Minister Keir Starmer said on Tuesday (July 29) Britain was prepared to recognize a Palestinian state in September at the United Nations General Assembly unless Israel takes a number of steps to improve life for Palestinians.

London

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Russia launched overnight air strikes on over 70 Ukrainian cities, killing more than 20 people, according to President Zelenskyy. A pregnant woman died near a hospital in the southeast, while a prison strike killed at least 17.

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For the first time, human rights groups inside Israel are accusing their own government of committing genocide in Gaza. Israel insists it is targeting Hamas, not civilians—despite nearly 60,000 Palestinian deaths since the war began almost two years ago.

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Former Colombian President Álvaro Uribe was found guilty of bribery and witness tampering in an unprecedented trial that has shaken the country.

Bogotá

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Russian Security Council Deputy Chairman Dmitry Medvedev posted on social media that President Trump's deadline push for a ceasefire with Ukraine is "a threat and a step towards war."

Moscow

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Ukraine says Russia's overnight air strikes hit a prison in Zaporizhzhia in the southeast, killing at least 17 people. Another 35 were injured. Authorities say the attacks destroyed the jail buildings and damaged several nearby houses.

Zaporizhzhia

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A gunman killed at least one police officer and shot a handful of other people Monday in the heart of New York City. CBS News New York has the latest details.

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The suspect in the Michigan Walmart stabbing attack that injured 11 people over the weekend pleaded not guilty Monday to terrorism and assault charges.

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