Scott Bessent Confirms Search For Jerome Powell’s Replacement

Jerome Powell’s days as Fed Chair are coming to an end as US Treasury Secretary Scott Bessent says the Trump-led administration is hunting for a replacement. Bessent has made the cut for a pool of candidates to replace Jerome Powell, with the Treasury Secretary open to assume the role.

Trump Administration Searching For New Fed Chair, Says Scott Bessent

According to a Bloomberg interview, Treasury Secretary Scott Bessent has confirmed the government’s plans to replace Jerome Powell as Fed Chair. Bessent disclosed that the Trump administration will work on finding Powell’s successor over the coming weeks and months.

Bessent has emerged as a contender for the Fed Chair role, prompting a clarification. In his interview, the current Treasury Secretary revealed that he is not mulling over the idea of replacing Powell as Fed Chair.

Bessent argues that he has “the best job” in the capital and is doing a remarkable job as Treasury Secretary. He revealed that his office will have the tax bill on President Trump’s desk by July 4 and wrap up the trade talks shortly. However, Bessent says the choice of Fed Chair ultimately lies with President Trump, and he will assume the role if appointed.

“I will do what the President wants, but I think I have the best job in DC,” said Bessent.

The Treasury Secretary says the administration will announce a replacement as early as October, with Powell’s term ending in May 2026. For now, the top candidates to lead the Fed include Scott Bessent, Kevin Hasset, Christopher Waller, and Kevin Warsh.

Jerome Powell Faces Pressure Over Interest Rates

Scott Bessent has lent his voice to the growing din, urging the Jerome Powell-led Federal Reserve to cut interest rates. Bessent points to falling inflation metrics and low inflation from tariffs as justifiable reasons for an interest rate cut.

President Trump has urged the Fed to cut interest rates by 1%, going on to send a handwritten note to Powell. The US president argues that the Fed’s decision to keep interest rates steady is costing the US billions, calling on Powell to resign.

However, traders are betting on a potential interest rate cut by the Fed in July as pressure on Powell surges. Furthermore, the traders are hinging their bets on Federal Reserve Governor Christopher Waller’s claim that interest rate cuts will happen in July.