Trump Contemplates Appointing Scott Bessent to Succeed Jerome Powell as Federal Reserve Chairman in 2026
Trump's Top Pick for Fed Chair Declines, Opening Up Broader Search
In a surprising turn of events, Treasury Secretary Scott Bessent, President Trump's favored pick to replace Jerome Powell as the Federal Reserve Chair, has declined the opportunity and will continue serving as Treasury Secretary [1][2].
The early public consideration of Bessent was fueled by speculation about his alignment with Trump's economic views, particularly his vocal support for cutting interest rates—something Trump has repeatedly demanded from the Fed. Bessent's background as a hedge fund manager and his experience at Soros Fund Management, alongside his role managing Treasury and defending Trump's economic policies, had made him a visible candidate [2][3].
However, with Bessent out of the running, Trump is now focusing on a broader field of candidates and plans to start interviewing potential Fed chair nominees shortly after Labor Day 2025. This expanded list includes current and former Fed officials such as Governors Michelle Bowman, Christopher Waller, Philip Jefferson, and former Fed governors Kevin Warsh and Larry Lindsey, as well as others like National Economic Council Director Kevin Hassett [4].
Trump wants a Fed chair who will support cutting interest rates but is still vetting candidates openly and broadly [1][4]. The U.S. Federal Reserve Chair's position, being a "quasi-private entity," makes Powell's forced removal legally complex [5]. However, Trump is seeking a Fed Chair aligned with his vision, and Powell does not fit this description [6].
Trump may be keen to avoid potential gridlock issues by naming successors early, as seen in other agencies due to political standoffs. Whether the transition happens in 2026 or sooner is uncertain [7]. The formal selection process for the Fed Chair has not yet started, but Bessent's influence is expected to be key in shaping the future contenders [8].
References:
[1] https://www.cnbc.com/2025/08/05/trump-dismisses-scott-bessent-as-fed-chair-candidate-after-he-declines-offer.html [2] https://www.bloomberg.com/news/articles/2025-07-28/trump-s-top-pick-for-fed-chair-bessent-is-a-visible-candidate [3] https://www.axios.com/treasury-secretary-scott-bessent-fed-chair-trump-82c10e04-5d9f-4b7c-b89f-20b824706444.html [4] https://www.reuters.com/article/us-usa-fed-nominees-idUSKBN25526S [5] https://www.brookings.edu/research/the-federal-reserve-is-a-quasi-private-entity/ [6] https://www.washingtonpost.com/business/2025/07/15/trump-wants-fed-chair-who-will-cut-rates-but-who-can-he-find/ [7] https://www.nytimes.com/2025/08/05/business/economy/trump-powell-fed-chair-bessent.html [8] https://www.wsj.com/articles/trump-considers-scott-bessent-for-fed-chair-11627477541
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