White House: Reports that US Treasury Secretary Bessent is seen as a contender to be the next Fed chair are false.

White House: Reports that US Treasury Secretary Bessent is seen as a contender to be the next Fed chair are false.

In recent weeks, speculation has been rife regarding the potential replacements for Federal Reserve Chair Jerome Powell, whose term ends in 2026. Two names have emerged as strong contenders: Kevin Warsh and Scott Bessent. However, reports suggesting that Bessent is a contender for the Fed chair position have been refuted by the White House.

Kevin Warsh, a former member of the Federal Reserve's Board of Governors, has been in talks with President Donald Trump regarding the Fed chair position [1]. Warsh, who served on the Board from 2006 to 2011, is known for his views on monetary policy and has been vocal about the Fed's approach to inflation and interest rates. He has criticized the Fed for not making a "cruel choice" between stable prices and full employment, advocating for broader measures to address financial market disruptions [1].

Scott Bessent, a hedge fund executive, has been mentioned as a potential successor to Powell. However, the White House has dismissed these reports, stating that Bessent is not being considered for the Fed chair position [2]. Bessent has been part of Trump's transition team and has expressed skepticism about the potential inflationary impact of Trump's economic agenda. He has dismissed concerns about inflation, stating that Trump's plans will not recreate a crisis of affordability [2].

The White House has not officially announced any plans regarding the Fed chair position. However, Trump has hinted at his desire to replace Powell with someone who would follow his direction on interest rates. He has criticized Powell for not moving fast enough on cuts and has named Warsh as a likely successor [3].

The selection of a new Fed chair will be a significant decision, given the Fed's role in managing the economy and setting monetary policy. The choice will have implications for interest rates, inflation, and the broader economic outlook. As the search for a new Fed chair continues, investors and financial professionals will be closely watching the developments and considering the potential impact on the markets.

References:
[1] https://www.financialexpress.com/business/investing-abroad-who-is-kevin-warsh-trumps-potential-choice-for-fed-chair-after-powells-term-3874807/
[2] https://www.moomoo.com/news/post/41591020/record-tr4cking-news-default
[3] https://www.cryptopolitan.com/trump-says-he-plans-to-fire-fed-chair-powell/