Treasury Secretary Scott Bessent is not in the running to be the next chairman of the Federal Reserve, President Donald Trump said Tuesday.
Bessent was previously considered to be a likely candidate to replace current Fed chair Jerome Powell next year when Powell’s term expires. But Trump told CNBC Tuesday that Bessent “wants to stay where he is” as Treasury secretary and will not be considered for the post.
Trump said he has four other names on the short list for Fed chair, including National Economic Council Director Kevin Hassett, one of his key economic advisors. Trump also signaled he’s considering former member of the Fed board Kevin Warsh for the top job.
The position will become vacant in May 2026 when current Fed chair Jerome Powell’s tenure is up. Powell was nominated by Trump during his first term, but the two men’s relationship has since splintered.
Trump has been critical of Powell in recent months due to the Federal Reserve’s reluctance to lower interest rates. Despite a hefty pressure campaign from the White House, Powell kept rates steady last week for the fifth time this year.
Trump has floated the idea of firing Powell but backed off these threats last month, indicating it was “highly unlikely” that he would try to do so. Removing the Fed chair requires the president to find sufficient cause on the basis of malfeasance or neglect of duty and cannot be done on the grounds of policy disagreements, which Trump’s pushback over interest rates would fall under.
The White House was given another opportunity to appoint an ally to the Federal Reserve when Fed Governor Adriana Kugler announced her resignation Friday. Each governor votes to change or keep steady interest rates, so filling Kugler’s vacant seat will be crucial as Trump continues to put pressure on the Fed to slash rates. Trump has not yet named Kugler’s replacement.
