Trump announces Scott Bessent out for Fed chair

President Donald Trump has announced that Scott Bessent will not replace Jerome Powell as Federal Reserve Chair.

Trump removes Scott Bessent from contention for Fed chair

In a recent interview, President Donald Trump stated that Treasury Secretary Scott Bessent is out of the running to replace Jerome Powell as the chair of the Federal Reserve. Trump explained that Bessent prefers to remain in his current position. While mentioning potential candidates for the Fed chair role, Trump criticized Powell for not lowering interest rates this year and suggested that he prefers lower rates for better voter appeal. The Fed's recent decision to keep rates unchanged has not been without dissent, highlighting internal tensions within the Federal Reserve.

Trump's remarks underscore a growing trend of political involvement in the Federal Reserve's traditionally independent operations. The President's open criticism of Powell and preference for lower interest rates signal an attempt to reshape the Fed to align more closely with his economic agenda. This move raises valid concerns about the separation of powers and could potentially lead to conflicts that affect monetary policy stability.

Highlights

The search for a new Fed chair goes hand-in-hand with Trump's broader economic strategies.