Trump Rules Out Scott Bessent for Fed Chair as White House Seeks Rate-Cutting Advocate

President Donald Trump confirmed on Tuesday that Treasury Secretary Scott Bessent will not be his pick to succeed Federal Reserve Chair Jerome Powell, marking a decisive turn in the White House’s search for a new central bank leader. During an interview with CNBC, Trump stated that Bessent had declined the possibility, expressing his own disappointment but respecting the decision. “Well, I love Scott, but he wants to stay where he is,” Trump said, noting that he had asked the question just the previous night and received a clear “no” in response [1].

Bessent, a former hedge-fund manager and a vocal advocate of Trump’s economic policies, had been seen as a leading contender for the Fed chair position. He has frequently criticized the Fed for its reluctance to cut interest rates in line with the president’s expectations and has been a high-profile figure in shaping the administration’s approach to monetary policy. However, his recent statements downplay any interest in moving to the Fed, with Bessent affirming in late June that the Treasury Secretary role was “the best job in Washington” and that he intended to remain there [1].

The decision to rule out Bessent comes as Trump’s administration continues to seek a candidate who aligns more closely with its economic vision. Trump has been increasingly critical of Powell’s leadership, especially regarding the pace of interest rate cuts and the Fed’s costly headquarters renovation. The administration has explored various potential candidates, including Kevin Hassett, Kevin Warsh, Michelle Bowman, and Christopher Waller, all of whom have ties to the Trump administration or experience within the Federal Reserve [1].

Bessent’s own comments in July had hinted at a broader consideration of candidates both inside and outside the Fed. Yet, his decision to step aside as a contender removes one of the most prominent figures in the discussion and shifts the focus to other names within the administration. Trump’s remarks suggest he is moving toward a Fed chair who will prioritize lowering interest rates and align more directly with the White House’s policy objectives [1].

The Federal Reserve chair position is expected to be filled by May 2026, when Powell’s current term expires. While Trump has previously threatened to remove Powell before this date, he has more recently indicated that he does not plan to do so without legal justification. This shift in tone follows criticism from industry leaders, including JPMorgan CEO Jamie Dimon, who warned of potential damage to the central bank’s independence if the administration overstepped [1].

Trump’s public engagement with the Fed has also included a visit to the construction site of the central bank’s new headquarters, where he and Powell were seen reviewing blueprints on live television. These moments have underscored the administration’s desire to exert influence over the Fed’s broader operations, even as the central bank maintains its traditional independence in setting monetary policy [1].

As the vetting process moves forward, the final choice for Powell’s successor is expected to be announced soon, signaling a new chapter in U.S. monetary policy under Trump’s leadership [1].

Source: [1] Who Will Replace Jerome Powell? Trump Says Not Scott Bessent (https://fortune.com/2025/08/05/who-will-replace-jerome-powell-trump-says-not-scott-bessent/)