Trump Drops Bessent—But the Heat on the Fed Is Intensifying

President Trump confirmed on August 5, 2025, that Treasury Secretary Scott Bessent will not be his pick for Federal Reserve Chair—Bessent prefers to remain at the Treasury, saying he’s “doing a great job” and wants to stay where he is. Although Bessent had been floated as a leading option, Trump has now officially removed him from consideration—even while continuing to press the Fed to lower interest rates and criticizing Jerome Powell’s cautious stance.

Despite ruling out Bessent, Trump insists he still has a shortlist of four candidates to succeed Powell when his term ends in May 2026, explicitly naming former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett, plus two others whose names he has not revealed. At the same time, Bessent—while out of the running—has escalated scrutiny of the Fed, backing a call for an institutional review and questioning its budgetary decisions, amidst ongoing Trump-led pressure for rate cuts.#