Key Takeaways
- Scott Bessent is considered a potential candidate to succeed Jerome Powell as Federal Reserve Chair.
- Tensions between President Trump and Jerome Powell exacerbate the urgency of naming a successor.
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Scott Bessent, the current Treasury Secretary and a Bitcoin supporter, is being considered as a potential successor to Federal Reserve Chair Jerome Powell, Bloomberg reported Tuesday, noting that his name has been floated by President Donald Trump’s advisers.
A White House official swiftly dismissed the report, Reuters said.
Trump’s shortlist also features seasoned economic policymakers such as Kevin Warsh, who was previously vetted for Treasury secretary, NEC Director Kevin Hassett, Fed Governor Christopher Waller, and ex–World Bank chief David Malpass.
Bessent, who oversees major financial policies, including the US Strategic Bitcoin Reserve initiative, neither confirmed nor denied interest in the Fed chair role when reached out by Bloomberg.
“I have the best job in Washington,” Trump’s Treasury Secretary said in a statement. “The president will decide who’s best for the economy and the American people.”
Regardless of Bessent’s presence in the small candidate pool, the name of Powell’s successor is expected to be announced “very soon,” according to President Trump.
Although Powell’s term extends through May 2026, the Trump administration has begun preparations to start the search for his successor.
The reason behind the move is intensifying political and economic pressures. President Trump has repeatedly criticized Powell’s cautious monetary approach, accusing the Fed of being too slow to combat inflation and economic struggles.
He has persistently called for the central bank to lower interest rates, even threatening to fire Powell in favor of a more aligned candidate.
In response to Trump’s push, the Fed has mostly maintained silence on policy decisions without directly engaging in political disputes.
However, in several public speeches and press conferences, Powell has firmly affirmed the Fed’s independence, emphasizing that monetary policy decisions are based solely on economic data and the Fed’s dual mandate of maximum employment and price stability.
There is little market support for Trump’s idea of firing Powell. According to Reuters, experts have warned against removing the Fed chair, arguing that it would seriously undermine confidence in the Federal Reserve’s independence and the Federal Reserve’s ability to combat inflation.
Bessent told Reuters in April that the White House planned to begin interviewing prospective candidates for the next Fed chief this fall. He added that the process is routine and downplayed concerns about Powell being removed early.
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