Treasury Secretary Scott Bessent is being floated as the next chair of the Federal Reserve—an institution whose credibility rests on its independence from political meddling.
Advisers inside and outside the White House are pushing for President Donald Trump to name Bessent as the successor to current Fed Chair Jerome Powell, whose term ends in May 2026, Bloomberg reports.
Bessent’s rise as a possible contender for the position follows Elon Musk’s explosive exit from the Trump administration. The two reportedly despised each other, culminating in a West Wing brawl.
As treasury secretary, the ultra-wealthy former hedge fund manager, has stood firmly behind Trump’s trade wars and overhaul of tax and regulatory policy. His appointment to the Fed would give Trump—who has grown increasingly frustrated with Powell—a trusted ally at the helm of the central bank.
In response to Bloomberg’s request for comment, Bessent, who would be the first openly gay Fed Chair, replied, “I have the best job in Washington. The president will decide who’s best for the economy and the American people.”
Trump has repeatedly tried and failed to get the Fed to slash interest rates in a bid to juice economic growth amid turmoil from his trade wars, frequently insulting Powell, whom he appointed his post in 2017.
The Fed has been reluctant to cut rates, with Powell saying that Trump’s tariffs are likely to trigger “a rise in inflation, a slowdown in economic growth, and a rise in unemployment.”
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue,” Trump fumed, after the Fed decided to keep its key rate unchanged at 4.3 percent in May.
While Trump has long sought greater influence over rate decisions, his nominee—facing Senate confirmation—will need to demonstrate a commitment to the Fed’s mandate to keep inflation low and employment strong, free from political interference.
Although Bessent’s closeness to Trump raises questions about his impartiality, his fluency in global financial markets and his reputation as one of the few “adults” in the administration, have led some to see him as a strong candidate.
“Given the amount of trust and confidence that the global financial community has in Scott Bessent, he’s an obvious candidate,” Tim Adams, president and CEO of the Institute of International Finance, told Bloomberg.
Another candidates reportedly under consideration is Kevin Warsh, who served on the Fed board from 2006 to 2011; Kevin Hassett, director of the White House National Economic Council; Christopher Waller, a current Fed governor; and former World Bank president David Malpass who have also been named as possible contenders, Bloomberg reported.
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