Trump has officially denied the possibility of Scott Bessent becoming the Chair of the Federal Reserve, although Scott was willing to accept the position if offered.
Trump's decision came right after Scott announced he would participate in the selection process to replace Jerome Powell, while criticizing Powell that he should step down when his chairmanship ends in 2026.
MAIN CONTENT
Trump rejected Scott Bessent despite him having previously shown a willingness to be the Fed Chair.
Scott Bessent proposed a clear change, not allowing Powell to stay and disrupt the market.
The two candidates Kevin Hassett and Kevin Warsh are considered top choices in Trump's 'Apprentice' style.
Trump rejected Scott Bessent with a direct statement.
According to Trump, Scott Bessent is not on the priority list for the Fed Chair position. Trump appreciates Scott's current work but does not want to change this position right away.
Previously, the Treasury Secretary introduced Scott on Bloomberg TV as a promising candidate, but just a few hours later Trump denied this in front of the press for a simple reason: 'Because I like the job he is doing.'
Scott Bessent wants to make a new mark, opposing the retention of Jerome Powell.
Scott Bessent believes Jerome Powell should leave the Fed after his Chair term ends in May 2026 to avoid causing chaos in the market. He emphasized that Powell staying on as a Fed governor could create confusion.
'I believe that a former Fed Chair continuing to stay will cause significant confusion for the market.'
Scott Bessent, Fed Chair candidate, 2025, Bloomberg.
Powell can still remain a member of the Fed Board of Governors until January 2028. Scott wants a clear start with a successor not affected by past factors.
Trump criticizes Jerome Powell and the Fed headquarters renovation costs.
Trump expressed dissatisfaction with Powell, especially regarding allegations of overspending on the Fed headquarters renovations. He called Powell 'stubborn' and referred to the upgrade costs as 'disappointing', implying this could be a reason for dismissal.
Powell has requested the Federal Reserve Bank Inspector to investigate the incident to clarify the information. However, Trump has made it clear that he wants to replace Powell, believing that he has maintained high interest rates for too long.
Who is the most promising candidate to replace Jerome Powell?
Currently, Kevin Hassett and Kevin Warsh are seen as top candidates for the Fed Chair position in a selection style similar to the 'Apprentice' show hosted by Trump.
Kevin Hassett, an official from the White House Council of Economic Advisers, has transitioned from a neutral economist to a strong supporter of Trump's monetary policy views.
'The Fed's interest rate adjustments before and after the election show they are not completely independent and not apolitical.'
Kevin Hassett, economist, 2025, Fox Business.
Kevin Warsh is a former Fed governor, highly regarded by Trump but rarely appears publicly. Nonetheless, Hassett remains a more prominent candidate in the selection process.
Scott Bessent and other candidates in the Fed Chair race.
Although Scott expressed that there are many excellent candidates, it is clear that he is not currently among the prioritized selection group. His statements about being ready for the task are now merely quotes in the media after Trump closed the selection.
Comparison table of potential Fed Chair candidates.
Candidate Experience Policy stance Trump rating Scott Bessent Financial expert, economic consultant Supports clear change, no Powell Rated well but eliminated early Kevin Hassett Chair of the Council of Economic Advisers Supports interest rate cuts, aligns with Trump Top supported candidate Kevin Warsh Former Fed governor Neutral, rarely appears publicly Highly regarded but less mentioned Jerome Powell (current) Current Fed Chair Maintains high interest rates, causing negative reactions from Trump Criticized by Trump and wanted to replace.
Frequently asked questions.
Is Scott Bessent the top candidate for the Fed Chair position? No, Trump just declared he is not the top priority even though Scott had expressed willingness. Why does Trump criticize Jerome Powell? Trump believes Powell keeps interest rates too high and the Fed headquarters renovation costs were severely over budget. Who is Kevin Hassett and why is he supported? Kevin Hassett is a White House economist, aligns with Trump's monetary policy and has a clear stance. Can Powell stay at the Fed after stepping down as Chair? Yes, Powell can serve as a Fed governor until January 2028 by law. What is special about Trump's Fed Chair selection style? Trump operates the selection like a reality TV show called 'Apprentice.'
Source: https://tintucbitcoin.com/scott-bessent-tu-choi-lam-chu-tich-fed/
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