President Donald Trump is reportedly considering Treasury Secretary Scott Bessent as a potential successor to Jerome Powell as Federal Reserve Chair, signaling a potential leadership shift in U.S. monetary policy. This deliberation emerges amid heightened tensions over Powell’s approach to interest rates, which Trump has repeatedly criticized.
Trump has publicly threatened to oust Powell over fundamental disagreements on interest rate policies despite legal safeguards protecting the Fed Chair’s position. Legal experts highlight the procedural complexity of such a move, noting the Supreme Court has historically affirmed the Fed Chair’s quasi-independent status – a factor that could prolong market uncertainty if a removal process ensues.
Beyond Bessent, other candidates reportedly under consideration include Kevin Hassett, Christopher Waller, and David Malpass. Each candidate represents distinct economic philosophies that could reshape monetary policy direction. Financial analysts warn that prolonged uncertainty regarding Fed leadership risks undermining investor confidence, potentially destabilizing the U.S. dollar and broader economic conditions.
The early-stage discussions indicate Trump’s intent to align monetary policy closely with his administration’s economic objectives, potentially paving the way for more accommodative policies.