The race to lead the U.S. Federal Reserve is heating up. President Donald Trump is seriously considering replacing current FED Chair Jerome Powell with Treasury Secretary Scott Bessent. Though Powell’s term doesn’t end until May 2026, Trump has said he’ll name a successor “very soon.” Now, as his economic team reshuffles, Bessent is emerging as a strong contender. This move could reshape the FED’s direction and test its independence.

FED at the Crossroads: Trump Pushes for Policy Shift

Trump’s dissatisfaction with Jerome Powell isn’t new. He nominated Powell in 2017 but has since soured on him. The reason? Powell’s refusal to lower interest rates, even as Trump pushes for aggressive economic stimulus. The FED has kept rates steady throughout 2025, citing inflation risks tied to Trump’s expanding tariff strategy. Trump sees this as a mistake. He wants a chair who aligns more closely with his views — and Bessent may be that person.

Replacing Powell with Bessent would mark a major shift. It would suggest that Trump wants tighter control over monetary policy. Trump has even said he should have influence over rate decisions. That’s raising alarm bells for those who worry about the FED’s independence. Still, many in Trump’s circle think a change at the top is overdue.

Scott Bessent’s Rise: From Trusted Adviser to FED Frontrunner

Scott Bessent has quietly become one of the most powerful voices in Trump’s economic team. As Treasury Secretary, he’s helped craft trade deals, shape tax policy, and roll back regulations. He’s also taken the lead in high-stakes talks with China. His performance during the early months of Trump’s second term earned praise from both insiders and market players. Steve Bannon, Trump’s former strategist, even called Bessent “the star of the cabinet.”

Despite his success, Bessent remains modest. “I have the best job in Washington,” he said, when asked about becoming FED chair. Still, many see him as the obvious choice. Tim Adams, CEO of the Institute of International Finance, said global markets trust him. But even Adams admits Bessent is a “dark horse,” especially since his background is not in monetary policy.

FED Leadership Battle: Warsh vs. Bessent

While Bessent is rising fast, he’s not the only one in the mix. Kevin Warsh, a former Fed governor, is also under serious consideration. Warsh served on the FED board from 2006 to 2011 and was interviewed by Trump last year for the Treasury Secretary role. Trump recently said Warsh is “very highly thought of.” Economist Arthur Laffer, a longtime Trump ally, strongly supports Warsh. He told the president that Warsh is “just perfect for the job.”

Still, Bessent brings a different kind of experience. He’s proven he can execute Trump’s economic agenda under pressure. And while Warsh knows monetary policy, Bessent may be more aligned with Trump’s broader strategy. The choice could come down to who Trump trusts more to carry out his vision — and who the financial world believes can keep the FED independent.

The FED’s Future Hinges on Trump’s Next Move

The decision to replace Jerome Powell isn’t just about personalities — it’s about the future of U.S. monetary policy. Trump has shown he wants a FED that follows his lead. That puts pressure on whoever takes the chair. Will they stand up for the FED’s independence? Or will they bend to political demands?

Whether it’s Bessent, Warsh, or someone else, the next chair will face a delicate balancing act. Markets are watching closely. So is the Senate, which must confirm the nominee. One thing is clear: Trump is preparing to leave a lasting mark on the central bank. And in doing so, he’s raising big questions about how much control a president should have over the FED.