Bessent’s name enters Fed chair race as Trump reshapes economic team

Trump is weighing a decision to replace Federal Reserve Chair Jerome Powell with Treasury Secretary Scott Bessent, according to people familiar with ongoing talks inside the administration, as reported by Bloomberg.

Powell’s current term ends in May 2026, but Trump confirmed on Friday at the White House that he’ll announce a successor “very soon.”

Though Kevin Warsh, a former Fed governor, has also been under consideration after being interviewed by Trump in November 2024 for the Treasury Secretary role, Bessent’s name is now being discussed just as seriously. Discussions are active, but formal interviews haven’t started yet, two individuals involved in the planning said.

Bessent’s name enters Fed chair race as Trump reshapes economic team

Scott Bessent has been leading Trump’s economic team through a push to rewrite America’s trade terms, overhaul taxes, and scale back federal regulations. His current role as Treasury Secretary puts him in a position that traditionally helps guide the process of picking a new Fed chair, but it’s not clear whether he’ll step back from that responsibility now that he’s being eyed for the job himself.

When asked about the possibility, Bessent told reporters, “I have the best job in Washington. The president will decide who’s best for the economy and the American people.”

Tim Adams, who serves as President and CEO of the Institute of International Finance, called Bessent “an obvious candidate” due to the level of trust he holds among global financial leaders. Still, Adams referred to Bessent as “a dark horse candidate” and said Warsh also remains a credible pick.

Trump, when questioned about Warsh on Friday, said, “He’s very highly thought of.” Warsh previously served on the Fed board from 2006 to 2011.

Bessent’s recent work includes driving talks on a trade agreement with China, which Trump considers a top priority in his wider effort to reset U.S. trade policy worldwide. He’s been directly involved in those negotiations while managing the broader strategy to revive the domestic economy.

Steve Bannon, Trump’s former chief strategist and now an outside adviser, told Bloomberg that Bessent had already proven he could handle Trump’s agenda during the chaotic opening stretch of his second term. “He’s not just the star of the cabinet, but a safe pair of hands for global capital markets,” Bannon said.

Trump pressures Powell over rates as more names surface

Trump has never hidden his frustration with Powell, who he nominated back in 2017. He’s repeatedly called out Powell for refusing to lower interest rates in the face of economic uncertainty. Just last month, Trump met with Powell at the White House and urged him to cut rates, but the Fed has kept them unchanged in 2025.

Officials at the Federal Reserve have defended the pause, saying it’s necessary due to inflation risks tied to Trump’s evolving tariff strategy. They believe the tariffs could slow growth and increase consumer prices, so a cautious approach makes more sense.

Still, the president doesn’t agree. Trump has said the Fed is making a mistake, and he’s also floated the idea that he should be able to influence monetary policy, raising concerns about the independence of the Fed under a new chair. Whoever takes Powell’s seat will have to prove they won’t be a puppet of the White House.

Adams from the IIF said both Bessent and Warsh would likely be seen as strong enough by financial markets to maintain some degree of Fed independence, at least in the short term.

But not everyone agrees Bessent is the right fit. Economist Arthur Laffer, one of Trump’s longtime allies, said, “Bessent is wonderful, but he already has a job. And his specialty is not monetary policy.” Laffer said he had already told the president that Warsh is “just perfect for the job.”

While Warsh and Bessent are the top two being talked about most often, Trump’s team has other names in the mix. Those include Kevin Hassett, current head of the National Economic Council, Christopher Waller, who is a sitting Fed governor, and David Malpass, who led the World Bank under Trump’s first term.

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