On June 6th, US President Donald Trump announced that he would “soon” name a successor to Federal Reserve Chair Jerome Powell, whose term ends in May 2026. Trump has previously criticized Powell for not cutting interest rates as expected and had even threatened to fire him at one point.
Speculation arose following reports from Bloomberg and other media outlets that current Treasury Secretary Scott Bessent and former Federal Reserve Governor Kevin Warsh were potential candidates.
However, on June 10th, the White House denied that Bessent was being considered as a candidate for the next chairperson of the Federal Reserve. Bessent himself responded by emphasizing that he “has the best job in Washington” and that Trump would choose the person who is most beneficial to the United States.
Bessent is known for his significant contributions to Trump’s international trade overhaul and his advocacy for tax and regulatory reforms. Despite the White House’s denial, Bessent’s name has been mentioned alongside Warsh’s as part of a shortlist of potential successors. Warsh, who was previously considered by Trump for the role of Treasury Secretary, has also been mentioned as a potential candidate.
The Federal Reserve Act of 1913 requires Senate confirmation for any new Fed chair, and Trump’s nominee will need to demonstrate a commitment to the Fed’s mandate to keep inflation low and employment strong, free from political interference. The eventual appointment will influence the Fed’s stance on rate cuts, inflation, and economic recovery.
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