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Key insight: Truist Financial reported third-quarter earnings Friday, with earnings per share that beat analysts' estimates.Forward look: The regional bank expects full-year 2025 expenses to rise about 1% compared with the prior year.Supporting data: Wealth management fees rose 6.9% year over year.This news is developing. Please check back for updates.Truist Financial exceeded Wall Street expectations for third-quarter earnings, with a year-over-year increase in wealth management income and service charges on deposits both contributing to the higher results.The regional bank, which recently announced on a branch opening project as part of an effort to gain more mass-affluent customers, reported net income of $1.45 billion for the period ending Sept. 30. That's a slight improvement from net income of $1.44 billion in the year-ago quarter. Earnings per share came in at $1.04. Analysts polled by S&P Capital IQ had predicted earnings per share of $0.99. Revenue totaled $5.19 billion, up approximately 2% compared with the same quarter last year, while expenses rose by 3% during the same time period to $3.01 billion. The Charlotte, North Carolina-based company put a firm number on one of its most closely watched profitability metrics, return on tangible common equity, disclosing in its third-quarter earnings presentation that it's aiming to achieve a 15% ROTCE in 2027. For the third quarter, Truist's ROTCE was 13.6%.It was a solid quarter for fee income, which climbed 5.1% year over year, the bank said in a press release. Wealth management income totaled $374 million for the quarter, up 6.9% year over year, largely as a result of more assets under management, the bank said. Service charges on deposits rose even higher, up 8.6% due to higher treasury management fees, it said.But those weren't the only bright spots. Mortgage banking revenue was up 11.3% year over year while lending-related fees were up 17%. Investment banking and trading fees were down 2.7%.In August, the $543.9 billion-asset bank said it intends to open 100 branches and renovate 300 existing offices in high-growth markets, primarily in the Southeast, as a way to attract more mass-affluent or "premier" customers, which Truist executives have previously defined as individuals with at least $100,000 in deposits or assets under management of up to $1 million. Read more about Truist: https://www.americanbanker.com/organization/truist-financialAs part of the same branch opening-and-refreshing initiative, Truist is hiring more financial advisors to serve those clients, modernizing ATMs and deploying more AI tools and capabilities.Truist's branch plans are among a recent wave of branch expansions being undertaken by large and regional banks. Most are targeting the fast-growing markets of the Southeast. Truist has not yet disclosed the number of new branches to be built in each of the target markets, which includes Atlanta, Austin, Dallas, Miami, Orlando, Charlotte, Philadelphia and Washington, D.C. It has also not yet said which existing branches will be renovated.For the third quarter, Truist's net interest income was $3.63 billion, up 0.6% year over year.Loans and leases were $325.7 billion at the end of the quarter, up from $304.4 billion in the year-ago quarter. Deposits totaled $394.9 billion, an increase from $387.8 billion a year ago.On Friday, Truist maintained its guidance for the full year. Adjusted revenue for 2025 should be up 1.5-2.5% compared with 2024 while adjusted expenses should rise about 1%, the bank said.Read more about bank earnings here: https://www.americanbanker.com/earningsDuring the quarter, the bank repurchased $500 million of its common stock. It expects to buy back another $750 million in the fourth quarter.

Key insight: Regional bank stocks were punished in the markets on Thursday as investors got skittish over credit quality.Supporting data: The KBW Nasdaq Regional Banking Index fell some 7% by the late afternoon.What's at stake: Regional banks have been on the path of recovery after turbulence throughout 2022 and 2023.Regional bank stocks were pummeled on Thursday due to credit quality concerns spurred by several regional lenders' latest disclosures about alleged borrower fraud.The KBW Nasdaq Regional Banking Index fell some 7% by the late afternoon after Zions Bancorp. and Western Alliance Bancorp. said they had exposures to fraud-linked losses.On Thursday, Zions' stock had plunged some 14%, and Western Alliance's stock had dropped about 12%.Jon Arfstrom, associate director of U.S. research at RBC Capital Markets, said during another bank's earnings call on Thursday afternoon that it was "a bloodbath out there in the bank stocks on credit fears."David Chiaverini, an analyst at Jefferies, said in a note that the regional bank stock dives were "overdone, given that the losses as a percentage of total common equity are low" for the banks that reported exposure.Zions said Wednesday evening that it would take a $60 million credit hit, including a $50 million charge-off, due to what it believes to be "apparent misrepresentations and contractual defaults" by borrowers and "other irregularities with respect to the loans and collateral."Zions said that the losses were tied to two borrowers with related commercial and industrial loans extended by its California Bank and Trust division.In August, Western Alliance sued Cantor Group V LLC on fraud allegations related to commercial real estate loans and their cash proceeds. On Thursday, the Phoenix-based bank said in a securities filing that it believes existing collateral will cover the obligation, and that total criticized assets were lower than they were on June 30. Western Alliance also affirmed its guidance and 2025 outlook.Banks have generally been chipper about credit quality on their third-quarter earnings calls, which started this week, despite recent instances of fraud that have racked up some losses.David Smith, an analyst at Truist Securities, wrote in a Wednesday night note that Zions "is clearly not the only bank to step on a rake with credit this quarter.""But is it a good thing or a bad thing in credit terms if these loans went bad due to fraud as opposed to the normal course of business?" Smith wrote. "Either way, there have been enough 'one-offs' in commercial credits for banks of late that investors are selling first and asking questions later."The disclosures by Zions and Western Alliance came just weeks after the collapse of subprime auto lender Tricolor Holdings, which filed for Chapter 7 bankruptcy after allegations of fraud by lenders that financed its operations.JPMorganChase, Fifth Third Bancorp and even smaller institutions like Origin Bancorp and Triumph Financial announced credit losses ranging from $20 million to $200 million.JPMorgan CEO Jamie Dimon said Tuesday that while the Tricolor case was a one-off situation, fraud makes his "antenna go up.""When you see one cockroach, there are probably more," he told investors. "So everyone should be forewarned at this point."

Fathom Holdings is deepening its Western presence and doubling down on first-time homebuyers with its acquisition of Colorado-based START Real Estate. The deal adds 70 agents and a first-time buyer program that recently entered Utah, bolstering Fathom's network following its purchases of Arizona's My Home Group and Texas-based Elite Financing Group."START Real Estate's growth and high mortgage attach rate are a perfect fit with our strategy to increase agent productivity and margins," said CEO Marco Fregenal.Fathom, headquartered in North Carolina, chose START specifically for its first-time homebuyer program. START, which recently expanded to Utah, has a proven model for guiding first-time buyers through the homeownership process, the release said.Fathom expects the first-time buyer program to expand to new markets across the country, aided by its proprietary intelliAgent platform, integrated mortgage and title businesses. Fathom's roughly 15,000 agents operate in 43 states and Washington D.C. START's 70 agents are expected to close about 400 transactions this year with a mortgage attach rate of more than 70%.A significant number of START agents are also expected to join Fathom's Elevate coaching program, a concierge-level service. Launched in April, the program is designed to help real estate agents scale through marketing, lead generation, transaction support and recruiting assistance, the company said in an earlier release."With many of START Real Estate's agents expected to join Elevate, this acquisition not only enhances our ability to serve a critical segment of the market, but also strengthens our platform with new recurring, high-margin opportunities that support long-term profitable growth," Fregenal said.

Mortgage rates declined for the second week in a row, as the 10-year Treasury in recent days has flirted with falling below the 4% mark.Last Thursday, the 10-year closed at 4.15%. As of 11 a.m. on Aug. 16, it was at 4.04%, helped by recent comments by Federal Reserve Chairman Jerome Powell regarding both short-term rate cuts and the balance sheet run-off.The 30-year fixed-rate mortgage averaged 6.27% on Oct. 16 down by 3 basis points from last week when it averaged 6.3%, the Freddie Mac Primary Mortgage Market Survey found. A year ago, it was at 6.44%.At the same time, the 15-year FRM this week was at 5.52%, down 1 basis point from seven days earlier. For the same week in 2024, the 15-year FRM averaged 5.63%.Rates have held relatively steady in recent weeks, Freddie Mac Chief Economist Sam Khater noted.The delayed data releases due to the shutdown is why this is the case, added Kara Ng, senior economist at Zillow Home Loans."Still, markets are using alternative data sources to gauge the economy's strength, the persistence of inflation, and the likely path of interest rates," Ng said in a Wednesday evening statement.Zillow expects mortgage rates to drift lower the rest of this year because of softer economic momentum and a cooling labor market. But not much lower as it predicts rates will remain "confined within the 6%–7% range observed in recent years," Ng said. "Substantial downward pressure on rates is unlikely for the remainder of 2025, though modest relief could emerge as 2026 unfolds."Compared with this same week one year ago, purchase application volume was up 20% and refinance rose 59%, the Mortgage Bankers Weekly Application Survey released on Wednesday found."Importantly, homeowners have noticed these consistently lower rates, driving an uptick in refinance activity," Khater said in the Freddie Mac press release. "Combined with increased housing inventory and slower house price growth, these rates also are creating a more favorable environment for those looking to buy a home."Eric Hagen, an analyst with BTIG, thinks the "ongoing brinkmanship" from the shutdown is likely to "further catalyze lower mortgage rates" as it drives marginal demand for assets like Treasuries and government-sponsored enterprise mortgage-backed securities."More broadly, we think a protracted shutdown could delay the timeline for a potential re-listing of the GSEs, leading us to further contemplate whether any negative read-thrus (sic) for housing finance could intensify in connection with future government shutdowns under a scenario where the GSEs are no longer in conservatorship," Hagen said in his Oct. 15 Mortgage Finance Roundup.Following the initial increase in the weeks after the September Fed meeting, mortgage rates have come back to one month low points, said Samir Dedhia, CEO of One Real Mortgage."This leveling out is being fueled by multiple forces. Expectations of future Fed rate cuts, combined with recent indicators of a cooling labor market and economy, are keeping long-term bond yields (and by extension, mortgage rates) in check," Dedhia said in a commentary after the Freddie Mac release. "Although inflation remains sticky, markets are pricing in the likelihood of at least one more Fed cut by year-end, helping to stabilize rate trends."

Rocket Mortgage might have been a few weeks behind its competition in announcing its presumptive 2026 conforming loan limit increase, but it took that time to go higher than the rest of the market.United Wholesale Mortgage, Pennymac, Crosscountry and Rate all announced in late September they were now purchasing single-family mortgages up to $819,000 for future sale to the government-sponsored enterprises.On Oct. 16, Rocket pushed its chips in, setting its limit at $825,500. For Alaska and Hawaii, the limit is now $1,238,325.None of these are the official conforming loan limits for 2026, which is normally announced by the Federal Housing Finance Agency in November, after its third quarter House Price Index is released. Federal law sets the formula the agency must use in determining the amount, which is also then applied to government-guaranteed mortgage programs as well.The conforming limit change is calculated from an expanded data set, which uses information from the government-sponsored enterprises, the Federal Housing Administration and what was previously called Corelogic (now Cotality). The FHFA's separate purchase-only HPI is just from the GSEs, the agency said in response to a query regarding last year's increase.The Rocket limit increases apply to loans which come directly into the company as well as those it acquires in its mortgage broker channel."We've taken the time needed to analyze current market data and rising home prices to determine the most accurate loan limits for today's environment," Bill Banfield, Rocket's chief business officer, said in an emailed statement. "This strategic decision reflects our commitment to providing accessible homeownership opportunities when families need them most."Rocket, and the others who announce early limit increases, need to hold the loans on their balance sheet until the start of 2026. The risk is that the amount FHFA is able to raise the conforming loan limits for next year is below what these mortgage lenders are announcing now.For 2025, FHFA boosted the conforming limits by over 5% to $806,500, but in some high cost areas, the one-unit limit was over $1.2 million.Limits differ based on the number of units in the property. A single-family mortgage can be used for homes with up to four units."This increase directly supports our fifth partner promise – 'Helping everyone home means everyone,'" Dan Sogorka, general manager of Rocket Pro, said in the statement. "Our new broker promises represent our dedication to expanding homeownership access across all communities."National Mortgage News reached out to those other major lenders who announced early conforming limit increases to see if they are planning to follow suit with Rocket.Crosscountry did not have any comment beyond its initial announcement, the company said in an email. Other companies have yet to comment.

Lately, mortgage rates have been kind of stuck in a holding pattern, though drifting lower at the same time.At last glance, the 30-year fixed was priced at around 6.25%, which is pretty good in the grand scheme of things. Definitely lower than the historical average of 7.75%.Given rates were closer to 7% for most of the past 52 weeks, it’s a decent spot to be in.They’re also basically hovering just above the lowest levels seen over the past three years, another positive takeaway.The question is how do they get their big break and finally duck below 6% again?Mortgage Rates Are Close to Breaking Below 6% for the First Time in Nearly Three YearsMortgage rates haven’t been sub-6% since February 2nd, 2023, at least according to Mortgage News Daily.And Freddie Mac hasn’t recorded a sub-6% reading for the 30-year fixed since the week ending September 8th, 2022!That’s a long time. Nearly three years now. Of course, they’ve been close to those levels at times since then.And at the moment, they’re not far off at all. In reality, homeowners are receiving mortgages that start with 5 already.But if we’re going to use a mortgage rate index like the highly-cited MND, or Freddie Mac’s Primary Mortgage Market Survey, we’re still above 6%.So how do we get below that key psychological level after nearly 36 months? Well, the best route is likely continued economic weakness and lower inflation.The problem right now is a lack of economic data due to the ongoing government shutdown, which is now on day 16.Even without it though, there are private data reports and even alternative ways of collecting data or gauging sentiment (OpenTable anyone?).Forget all that though. We’re nearly at sub-6% levels as it stands, so we don’t need a lot of news to go a little lower.And as I’ve said before, mortgage rates tend to fall during government shutdowns anyway.Where’s the Flight to Safety?Just take a look at 10-year bond yields, which are the bellwether for 30-year fixed mortgage rates.The 10-year yield is currently at 4.02%, doing a little standoff just above the 3s. It has briefly dipped below 4% at times in the past week, but hasn’t held there.It continues to stay just above 4% as it’s a point of resistance. Just as it seems 6% is a point of resistance for consumer mortgage rates.Here’s the thing though. We’re knocking at the door to a sub-4% 10-year bond yield without fresh economic data.And we’re also doing so at a time when the stock market is at/near all-time highs!Generally, stocks and bonds have an inverse relationship, in that if one goes up, the other goes down and vice versa.So if stocks are red hot, which they seem to be at the moment, it means bonds should be ice cold. And if bonds are ice cold, their associated yield (or interest rate) should be quite high to attract investors.Does that mean if and when stocks take a breather, we’ll see a flight to safety in bonds, which will finally lift bond prices and lower their yields?It certainly makes sense, and given we are already hovering just above 4%, you could envision a scenario where we finally bust through into the 3s.Bond Yields Could Push to the Low End of Their RangeBack in May, JPMorgan Asset Management fixed income portfolio manager Kelsey Berro noted that the 10-year bond yield was trading in a range from 3.75% to 4.50%.And with the Fed in a neutral if not arguably easing position, chances are we should be moving to the lowest end of the range.Assuming that happens, and we get down to 3.75%, mortgage rates should follow, as they historically do.If we currently have a 30-year fixed at 6.25%, you can see a path down to 5.99% and even lower.It could even happen in the final three months of the year, as there’s still plenty of year left in 2025.You really only need a flight to safety in bonds and a stock market pullback, which many seem to believe is long overdue.We’ve got some sky-high valuations at the moment, an abundance of meme stocks, including mortgage and real estate-related names, and general euphoria happening in the market right now.So it wouldn’t be unrealistic to see a big move from stocks to bonds at some point over the next few months.As noted, we’re already almost there anyway. Just about 25 basis points and mortgage rates could be back to levels last seen in 2022.Read on: How to track mortgage rates.(photo: Courtney) Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.Latest posts by Colin Robertson (see all)

Confidence among US homebuilders rose this month by the most since early 2024, boosted by lower mortgage rates that are chipping away at the nation's affordability problem.An index of market conditions from the National Association of Home Builders and Wells Fargo increased 5 points in October to 37, the highest since April. A value below 50 means more builders see conditions as poor than good. Economists surveyed by Bloomberg estimated sentiment would tick up slightly to 33."While recent declines for mortgage rates are an encouraging sign for affordability conditions, the market remains challenging," NAHB Chairman Buddy Hughes said in a statement Thursday. "Most home buyers are still on the sidelines, waiting for mortgage rates to move lower."Components of the index all rose, including the highest reading for sales expectations in the next six months since the start of the year. Gauges of present sales and prospective buyer traffic climbed to the highest levels since April, when mortgage rates had also been declining.Borrowing costs fell even further in September to a one-year low, sparking what turned out to be a modest boost in buyer demand. Builder KB Home suggested in late September that its orders didn't match such a big drop in rates."I wouldn't say that we've seen a big uptick yet, or maybe the uptick that we would expect to see from such a change in mortgage rates," company President Robert McGibney said on KB Home's third-quarter earnings call. "And I think to some extent buyers are in maybe a bit of a wait-and-see mode."For now, builders have been slowing their pace of construction and trying to lure buyers with a mix of price cuts and sales incentives. In October, 38% of builders reported cutting prices, similar to recent months, according to NAHB. More broadly, 65% of builders reported used sales incentives, unchanged from a month earlier.Confidence rose across the country, led by the Northeast and South, which is the US's biggest homebuilding region. Gains were more tame in the West and Midwest.The National Association of Realtors will provide an update on the existing-home market on Oct. 23, when it releases a report on previously owned home sales in September.

Bottom line: A double-digit spike in fee revenue pushed the company's third-quarter net income past $2 billion.Expert quote: "Solid net interest income growth and margin expansion, as well as continued momentum across our fee businesses and prudent expense management supported double-digit net income growth," CEO Gunjan Kedia said.Key insight: Mortgage banking revenues rose 16% to $180 million.U.S. Bancorp reported third-quarter net income of $2 billion Thursday, up 17% over the comparable 2024 result as fee income spiked and credit quality held steady. Third-quarter revenue of $7.3 billion increased 7% from the same period last year, driven in large part by the significant jump in noninterest income. Fee revenue jumped 14% year-over-year to $3.1 billion. The advance was broad-based, with credit cards, merchant processing, trust and investment services and capital markets each delivering year-over-year gains. Mortgage banking revenue of $180 million, was up 16%. Capital markets income of $434 million jumped 9%, matching a trend seen at other big banks. "The near-term outlook for investment banking activity has started to improve relative to earlier in the year when the Trump Administration announced its tariff policies in April," RBC Analyst Gerard Cassidy wrote Wednesday in a research note. U.S. Bancorp's third-quarter noninterest expense of $4.2 billion matched the Sept. 30, 2024 number. Credit quality remained solid with both net chargeoffs and nonperforming loans declining from third-quarter 2024 levels. Chargeoffs of $536 million dropped 5%. Nonperforming loans fell 10% to $1.65 billion. The $695 billion-asset U.S. Bancorp's improved credit quality metrics were in line with other regional and money center banks. Wells Fargo and Bank of America also reported declines in chargeoffs and problem loans. "Solid net interest income growth and margin expansion, as well as continued momentum across our fee businesses and prudent expense management supported double-digit net income growth, on both a linked quarter and year-over-year basis," CEO Gunjan Kedia said in a press release. "This quarter's strong results reflect the power of our strategy and the dedication of our teams across the franchise." The increased earnings follow on the heels of last week's news that Anchorage Digital Bank had tabbed U.S. Bancorp to serve as custodian for its new stablecoin platform, bolstering its position as a leading stablecoin custodian. On Wednesday, U.S. Bancorp moved to press its advantage, unveiling the creation of a digital assets and money movement group to further capitalize on digital products and services, including cryptocurrency custody, stablecoin issuance and asset tokenization. "Digital assets are rapidly evolving, and U.S. Bank is well-positioned as they grow and become more common across financial services," Chief Digital Officer Dominic Venturo said in a press release. U.S. Bancorp's third-quarter net income amounted to $1.22 per share, beating analysts' estimate of 1.11, according to Zacks Investment Research. The company's broader results hit the medium-term targets it announced at its investor day event in September 2024. Return on assets of 1.17% was slightly higher than the 1.15% target, while return on tangible common equity of 18.6% reached guidance calling for a result in the high teens. "For the quarter, we generated meaningful positive operating leverage, on a year-over-year basis, and made steady progress toward our medium-term financial targets,' Kedia said in the press release. U.S. Bancorp is forecasting fourth-quarter numbers largely in-line with third-quarter results. Guidance calls for net interest income near $4.25 billion along with fee income of approximately $3 billion. U.S. Bancorp's deposits totaled $526 billion on Sept. 30, up 1% from a year ago. Loans of $382.5 billion increased 1.4%.

 Homeowners are seeing smaller profits from sales compared to a year ago, but the latest numbers still surpass pre-pandemic levels, as growing numbers hold onto their properties amid surging equity accrual. Sellers gained an average of 49.9% in profit after transactions closed during the third quarter, according to the latest home sales report from real estate analytics provider Attom. While the margin grew from 49.3% three months earlier, profits shrunk from 55.4% one year prior. Profit margins are calculated as the percent difference between median purchase and resale prices. In raw number terms, the typical profit amounted to $123,100, a 1.9% increase from the previous quarter, but 3.5% lower from 12 months ago.  Despite the year-over-year drop amid slowing sales, current margins still far exceed pre-pandemic levels of near 30%, with surging home values this decade leading to higher gains for sellers."Profit margins remained steady and high throughout the traditionally busier summer selling season," Attom CEO Rob Barber said in a press release. "While continuously rising prices could have chased away buyers and slackened demand, the recent dip in mortgage rates may be helping to keep more people in the market," he noted. The 30-year conforming average steadily dropped throughout the quarter by more than 30 basis points.  Although profits were up on a quarterly basis, margins decreased in a majority of the metropolitan areas tracked by Attom, indicating wide regional variations in today's housing market. Sales in large urban areas resulted in 18 times greater gains than those at the lower end. The city with the highest profit margin was San Jose, California at 94.3%. Seattle and Buffalo, New York, followed at 80.2% and 80%, respectively. Ninety-two of 157 markets saw slimmer margins from the prior quarter, though, with Tampa, Florida; Seattle and Fresno, California seeing the largest pullbacks. Major California cities dominated the list of top gainers on a per-dollar basis, with sellers in San Jose seeing $740,500 in profit from a single transaction, followed by San Francisco and San Diego at $450,000 and $350,000.The median home sales price also came in at $370,000, hitting a new high for the second-straight quarter and increasing close to 3% from a year ago. Although profit margins may have fallen, home prices still rose in 55.3% of markets quarter over quarter and in 76.7%   compared to a year ago.   The lock-in effect on profits and home pricesLimited inventory is playing a large role in driving prices — and profit margins — up with the data pointing to some of the leading factors behind sluggish growth.   The lock-in effect that left homeowners reluctant to sell and give up favorable mortgage rates obtained from refinancing earlier this decade contributed to keeping home values up near all-time highs. Homeowners who sold their properties in the third quarter had held them for an average of 8.39 years, the longest length of time in at least 25 years. Average home tenure grew from the second quarter's 8.13% and increased from 8.02% on a year-over-year basis. How all-cash and institutional sales performedElsewhere, Attom found all-cash sales made up 38.9% of home sales last quarter, rising from 38% three months earlier and 37.6% a year ago. Purchases made by institutional investors decreased to a 6.4% share compared to 7% in the second quarter, but sales were up from 6.1% a year ago. States with the largest percentage of institutional buyers were Texas and Missouri, both at 8.8%, followed by Tennessee with 8.7%. 

Treasury Secretary Scott Bessent said he would present President Donald Trump with a list of candidates to serve as the next chair of the Federal Reserve in December."Likely sometime after Thanksgiving, in December, we'll present the president with three or four candidates for him to interview," Bessent told CNBC on Wednesday. Bessent said he's culled the list of 11 candidates he interviewed to five. CNBC has previously reported those five candidates are Vice Chair for Supervision Michelle Bowman, Fed Governor Christopher Waller, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh and BlackRock Inc. executive Rick Rieder."At the end of the day, he'll take input like he always does, from dozens, hundreds of people, and then make a decision," Bessent said about Trump's decision-making process.The Treasury secretary said he would not be the next Fed chair, reiterating an earlier assertion that he is not part of the pool of contenders.Bessent has led the search to find the next person to serve as Fed chair when Jerome Powell's term leading the central bank expires in May 2026. The search for Powell's successor places the candidates in a precarious balancing act. They all must signal to Trump that they are keen to slash interest rates, while also demonstrating to markets that they have the economic expertise to do the job and will act independently of the White House.Trump, who has repeatedly lambasted Powell for being too slow to lower borrowing costs, has said he wants the central bank to sharply cut interest rates by three percentage points. But investors worry such a drastic move could tip the bond markets into turmoil and cause inflation to surge.Bessent didn't directly address whether a candidate needs to support lowering interest rates, saying he has two criteria for candidates."One, do you have an open mind? What's your theory of the case?," he said.  "This is also a gigantic, sprawling organization that does payments, regulation. So there also needs to be a management level here," Bessent added.The next chair is likely to be named to a 14-year Fed governor term which opens up in early 2026. Trump is also seeking to oust Fed Governor Lisa Cook over allegations of mortgage fraud. The Supreme Court has scheduled arguments for January, but has said she can stay in the job while the legal case is pending.