Trump removes Bessent from Fed chair consideration

President Trump has excluded Treasury Secretary Scott Bessent from his shortlist for Federal Reserve chair.

Trump removes Bessent from consideration for Fed chair

President Trump announced that he has removed Treasury Secretary Scott Bessent from his list of potential candidates to lead the Federal Reserve next year. During an appearance on CNBC’s "Squawk Box," Trump joked about selecting anchors from the network for positions at the central bank. Although Bessent had previously been mentioned as a possible successor to current Fed Chair Jerome Powell, he expressed a desire to remain in his current role. Trump indicated that he has four other individuals in mind to take over the position, as Powell's term will end in May 2026. Trump has publicly criticized Powell for his approach to interest rates, and he remains adamant that he will not attempt to fire him. However, he reassured that his search for qualified candidates continues, highlighting the national economic situation, which includes rising inflation and an underwhelming job market report.

The decision to rule out Scott Bessent underscores the intense scrutiny surrounding Federal Reserve leadership and the broader economy. Trump's frustration with Powell reflects a tension between economic policy and presidential preferences. As inflation continues to exceed target levels, the Fed's stance on interest rates becomes a pivotal point in managing the nation's economic strategy. Trump's comments may also signal a push for more control over monetary policy as he navigates an unstable job market and attempts to solidify his position ahead of future political contests.

Highlights

Trump's remarks highlight the ongoing debate over monetary policy direction.