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Bessent advises Powell to resign from Fed

US Treasury Secretary Scott Bessent suggested Jerome Powell should leave the Fed board when his term ends in 2026.

July 15, 2025 at 11:31 AM

Bessent Suggests Powell Should Leave Fed Board in May

Scott Bessent urges Jerome Powell to resign from the Federal Reserve Board when his term ends.

Bessent calls for Powell to step down from Fed board in 2026

US Treasury Secretary Scott Bessent expressed that he believes Federal Reserve Chair Jerome Powell should leave the central bank’s board when his term as chair concludes in May 2026. Bessent highlighted that traditionally, a Fed chair steps down from their role as governor at the same time. He warned about potential market confusion if a former chair were to remain on the board, emphasizing the importance of clarity in financial leadership.

Key Takeaways

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Bessent suggests Powell's departure could clarify Fed leadership.

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Concerns grow over market confusion amid Fed leadership changes.

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Timely discussion as monetary policy debates intensify.

"Traditionally, the Fed chair also steps down as a governor."

Bessent explains the customary practice of Fed chairs leaving their governor role at the end of their term.

"I think it’d be very confusing for the market for a former Fed chair to stay on also."

Bessent warns about the potential for market confusion with Powell remaining on the board.

Bessent’s comments reflect ongoing concerns about leadership stability at the Federal Reserve. With inflation and interest rates in flux, the role of the Fed chair is crucial for market confidence. Calls for Powell's departure may also signal a shift in expectations about monetary policy direction, illustrating the complex interplay between government officials and financial markets. This situation raises important questions about continuity and the central bank’s future vision.