Treasury Secretary Bessent Leads Search for Next Fed Chair as Powell's Term Nears End
Jamie Redman
Economics
Treasury Secretary Scott Bessent is actively involved in selecting a replacement for Federal Reserve Chair Jerome Powell, whose term concludes in May 2026, with President Donald Trump expected to announce a successor imminently.
Powell Successor Expected Soon; Bessent Warns of Market Risks
Treasury Secretary Scott Bessent is playing a pivotal role in the process of replacing Federal Reserve Chair Jerome Powell, with President Donald Trump indicating an announcement on Powell’s successor could come within weeks. Powell’s term as chair is scheduled to end in May 2026.
Potential candidates reportedly under consideration include Bessent himself, former Fed governor Kevin Warsh, National Economic Council Director Kevin Hassett, current Fed governor Christopher Waller, and former World Bank President David Malpass. Warsh, viewed as an early favorite, has been interviewed by Trump and holds views critical of the Fed’s credibility.
Bessent’s involvement is multifaceted. As Treasury Secretary, he is a key advisor steering the selection effort. Simultaneously, his name features prominently on lists of potential contenders, drawing significant attention due to his current position in shaping Trump’s economic policies on trade, taxes, and regulation.
The administration’s accelerated timeline aims to finalize a candidate soon, with formal interviews expected to begin shortly. This expedited process has generated debate. Bessent has publicly cautioned that prematurely replacing Powell could unsettle financial markets, adding complexity to the decision.
The potential early replacement is seen by analysts as an effort to align the Federal Reserve more closely with Trump’s economic agenda, particularly concerning interest rate policy. Bessent has stated publicly that tariffs have not fueled inflation, signaling policy viewpoints relevant to the Fed’s future direction.
As of Monday, formal interviews had not yet commenced. The final selection rests with President Trump, who will choose based on his administration’s economic priorities. The coming weeks are deemed critical for the outcome.
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