Report: U.S. Treasury Secretary Bessent is seen as one of the candidates for the next Federal Reserve Chair
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Report: U.S. Treasury Secretary Bessent is seen as one of the candidates for the next Federal Reserve Chair
Besent responded: "I have the best job in Washington. The president will decide who is best suited for the American economy and people."
Navigating Web3 tides with focused insightsBy He Hao, Wall Street Insights
According to media reports on Tuesday, Scott Bessent, the current U.S. Treasury Secretary, is being viewed as one of the candidates for the next Federal Reserve Chair. Some advisors both within and outside the Trump administration are advocating for Bessent to take on the role, making him one of the leading contenders.
On Friday last week, Trump said he would soon name a successor to the current Fed Chair Jerome Powell. The formal interviews for the next Fed Chair have not yet begun. Powell's term is set to end in May 2026.
In response to these reports, Bessent said: "I have the best job in Washington. The president will decide who is best for the American economy and people."
A senior U.S. government official denied the related reports but did not provide specific details. Subsequently, the White House dismissed media reports suggesting Bessent could be a potential candidate for the next Fed Chair, calling them false.
Bessent is currently leading efforts to implement an economic reform agenda involving significant changes to trade, taxation, and regulation. As the current Treasury Secretary, he is expected to play a key role in identifying and interviewing candidates for the next Fed Chair. It remains unclear whether he would recuse himself during the president’s decision-making process.
Other Candidates
Media citing sources indicated that former Fed official Kevin Warsh is among those under consideration for the next Fed Chair. Warsh interviewed for the Treasury Secretary position in the Trump administration last November and is now seen as a frontrunner for the central bank leadership role.
Other names mentioned include Kevin Hassett, Director of the White House National Economic Council; Christopher Waller, a member of the Federal Reserve Board; and David Malpass, former President of the World Bank.
When asked about Warsh last Friday, Trump said: "He has a good reputation."
Tim Adams, President of the Institute of International Finance, said Bessent enjoys high credibility in global financial circles and is an obvious candidate. Adams also described Bessent as a "dark horse," while noting Warsh is also a strong option.
Steve Bannon, former White House Chief Strategist, said: "Bessent has proven himself capable of executing the president’s agenda during an extremely turbulent first six months. He’s not only a star in the cabinet but also a safe choice for global capital markets."
Economist and Trump ally Arthur Laffer said Bessent is excellent, but already has a job—and monetary policy isn’t his specialty. "I told the president I think Warsh is the right choice," he said.
Fed Independence in Focus
This year, the Federal Reserve led by Chair Powell has chosen to hold interest rates steady, citing the need for patience amid uncertainties caused by Trump’s frequent use of tariff policies. The Fed believes these tariffs could weaken economic growth and fuel inflation.
Trump originally nominated Powell as Fed Chair in 2017. However, he has frequently criticized Powell for not cutting rates quickly enough, repeatedly pressuring him to lower interest rates. Trump has often stated he should have a say over interest rate decisions, raising concerns about whether the next chair might simply follow presidential orders.
Analysts say the next Fed Chair must prove to markets that the Fed remains independent and free from political influence. Tim Adams of the Institute of International Finance believes that whether it’s Bessent or Warsh, the financial community would generally trust either to uphold the Fed’s independence.
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