US President Donald Trump had last week said that he would announce the successor to replace Jerome Powell “very soon”. Powell’s term ends as the Fed Chair in May 2026. Recent reports suggest that there is a growing call for Treasury Secretary Scott Bessent to be named as the next Fed Chair, a report by Bloomberg said.
Why Bessent is considered as the next contender to succeed Powell?
Bessent has been leading Trump’s push to revive the US economy via major reforms in taxes, trade, and regulation. He is now being considered as a possible candidate for a top economic role, Bloomberg cited sources familiar with the matter. These individuals, speaking on condition of anonymity, said that formal interviews for the position have not yet started.
When asked about the possibility, Bessent responded by saying that he is focused on his current role and that the final decision rests with the president, who will choose whoever he believes is best for the country and its economy.
Will Bessent resign as Treasury Secretary?
If selected, Bessent would typically have a major role in helping choose the next Federal Reserve chair, being the Treasury Secretary. SO it is still not clear, when the process begins, if he will step down.
Who else is on the contender list?
Kevin Warsh, a former Federal Reserve official, is also among the few names that are being considered for the role, Bloomberg said citing sources familiar with the discussions. Trump had previously interviewed Warsh for the Treasury Secretary position back in November.