Tensions are rising once again behind the scenes of U.S. politics – former President Donald Trump is reportedly considering replacing Federal Reserve Chairman Jerome Powell. According to sources close to Trump’s team, current Treasury Secretary Scott Bessent is a leading candidate for the job. While formal interviews haven’t started yet, Trump’s advisors are said to be heavily pushing for Bessent’s nomination.

Race for the Fed: Bessent vs. Warsh

Powell’s term doesn’t end until May 2026, but Trump has hinted that he will announce a successor “very soon.” While Kevin Warsh, a former Fed board member, was interviewed for the role back in November 2024, Bessent’s name is now being discussed with equal – if not more – seriousness.

Bessent currently heads Trump’s economic team and plays a key role in overhauling trade policy, reforming taxes, and cutting back federal regulations. As Treasury Secretary, he would typically help select the next Fed Chair – but now, he might end up taking the job himself.

When asked about the possibility by reporters, Bessent smiled and said: “I have the best job in Washington. It’s the President’s decision to choose what’s best for the economy and the American people.”

Bessent’s Star Is Rising

Tim Adams, president of the Institute of International Finance, called Bessent a strong candidate who enjoys a high level of trust among global financial leaders. He referred to Bessent as a “dark horse” in the race but acknowledged his growing momentum. Warsh, however, remains a serious option – Trump recently stated he has “great respect” for him.

Bessent is also directly involved in negotiating a new trade deal with China, which is a top priority in Trump’s global economic reset. His leadership is praised by former White House chief strategist Steve Bannon, who said: “Bessent isn’t just a cabinet star, he’s a safe hand for global capital markets.”

Trump’s Frustration with Powell Grows

Trump has long criticized Powell, whom he nominated in 2017, for being too cautious with interest rate cuts. Despite economic uncertainty, the Fed has held rates steady through 2025 – a decision Trump recently challenged during a meeting with Powell at the White House.

Fed officials argue the pause is necessary due to inflation risks, particularly from Trump’s evolving tariff strategy. They warn that new tariffs could slow growth and push consumer prices higher, calling for a more cautious approach.

Trump disagrees, claiming the Fed is making a mistake. He has also expressed the belief that presidents should have more influence over monetary policy – raising concerns about the Fed’s independence under new leadership. Whoever replaces Powell will need to prove they’re not a puppet of the White House.

Other Names in the Mix

Besides Bessent and Warsh, other potential candidates are being floated within Trump’s inner circle:

🔹 Kevin Hassett – Head of the National Economic Council

🔹 Christopher Waller – Current Fed Governor

🔹 David Malpass – Former World Bank President during Trump’s first term

Despite Bessent’s strong global financial relationships, some experts point out that monetary policy isn’t his primary area of expertise. Economist Arthur Laffer, a longtime Trump ally, said: “Bessent is great, but he already has a job. Warsh is simply perfect for this role.”

So, who will ultimately take the Fed’s top seat? The decision is expected soon – and it could reshape not only U.S. monetary policy but also financial markets worldwide.

#TRUMP , #Fed , #FederalReserve , #USPolitics , #TradingCommunity



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