At least we now know who won’t be the next chairman of the Federal Reserve. President Donald Trump on Tuesday publicly ruled out Treasury Secretary Scott Bessent as a candidate to lead the central bank, narrowing the field of contenders to replace Jerome Powell. Speaking to CNBC, Trump explained the decision with characteristic bluntness:
“Well, I love Scott, but he wants to stay where he is,” Trump said during a “Squawk Box” interview. “I asked him just last night, ‘Is this something you want?’ [Bessent said], ’Nope, I want to stay where I am. He actually said, ‘I want to work with you.’ It’s such an honor. I said, ‘That’s very nice. I appreciate that.’”
With Bessent out, Trump is now eyeing former Federal Reserve Governor Kevin Warsh, White House economist Kevin Hassett, and two other unnamed individuals for the role, according to CNN. The announcement comes amid Trump’s escalating attacks on Powell, whom he has derided as “too late,” “a numbskull,” and “a complete moron” for his refusal to slash interest rates in 2025. Trump’s rhetoric has reignited concerns over the politicization of the central bank and its capacity to operate independently.
The Federal Reserve recently held rates steady, despite internal dissent. Fed Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman pushed for a 25-basis-point cut, but Powell cited trade uncertainty—particularly the impact of tariffs—as justification for caution. The decision has deepened Trump’s frustration, as he seeks looser monetary policy in the run-up to the 2026 midterms.
Trump also addressed another looming personnel move: the vacancy left by outgoing Fed Governor Adriana Kugler. “I’m going to be announcing that very shortly,” he said, noting the appointee would serve a temporary four-month term, though he left open the possibility they could be elevated to chair when Powell’s term expires next year.
Bessent, meanwhile, remains focused on his current duties, including spearheading trade negotiations with Chinese officials in Sweden. Those talks aim to preserve existing tariff arrangements ahead of the August 12 deadline.
With the search intensifying, the central question remains whether Trump’s preferred candidate will preserve the Fed’s tradition of independence—or bend it toward the political winds of an election season.
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