Four Candidates Considered for Federal Reserve Chair, Bessent Not in Running, Trump Announces

United States President Donald Trump has clarified that Secretary of the Treasury Scott Bessent will not be his choice to succeed Federal Reserve Chair Jerome Powell. In a recent interview, Trump indicated that Bessent expressed a desire to remain in his current role, highlighting his effectiveness in the position.

“I have a great deal of admiration for Scott, and he’s keen on staying where he contributes best,” Trump stated during a discussion with CNBC. Bessent’s performance has been regarded positively, and he reportedly communicated his preference to continue in his current position as recently as Monday.

As the Federal Reserve’s future course remains uncertain, Trump mentioned he is contemplating four potential candidates to replace Powell, whose term is set to expire in May. Among these candidates are Kevin Warsh, a former member of the Federal Reserve Board of Governors, and Kevin Hassett, who currently leads the White House National Economic Council.

Additionally, Trump has the opportunity to select a replacement for Adriana D. Kugler, who recently announced her early resignation from the Fed’s governing board. This move opens the possibility for Trump to position his chosen candidate as chair prior to Powell’s departure, potentially influencing the direction of monetary policy during a pivotal time for the U.S. economy.

Trump’s vocal criticism of Powell, whom he has referred to as “too late” for not aggressively lowering interest rates, has raised important discussions about the independence of the Federal Reserve, a factor that is vital for the stability of the U.S. economy. Investors are increasingly attentive to these developments, as maintaining the Fed’s autonomy is considered crucial for ensuring economic health.

Recent reports indicated that Trump had inquired with Republican lawmakers regarding the feasibility of removing Powell from his position, which contributed to a brief decline in the benchmark S&P 500 index by 0.7 percent. However, after Trump reaffirmed that he did not intend to dismiss Powell prematurely, U.S. stocks quickly stabilized, indicating investor confidence in the current monetary policy framework.

According to existing legislation and U.S. Supreme Court precedents, the president’s ability to remove the Federal Reserve chair is limited to actions “for cause,” which broadly encompasses instances of corruption or malfeasance.

As the financial landscape continues to evolve, the decisions made by President Trump and the Federal Reserve will play a significant role in shaping the economic future of the United States.

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