News Development – August 5, 2025
Washington, D.C. – Former President Donald Trump confirmed today that Treasury Secretary Scott Bessent is no longer being considered as his nominee to replace Federal Reserve Chair Jerome Powell, citing Bessent’s preference to remain in his current position.
> “I love Scott, but he wants to stay where he is,” Trump told CNBC. “I’ll take him off, because I asked him just last night, ‘Is this something you want?’ [He said] ‘Nope, I want to stay where I am.’”
Trump’s updated shortlist now includes former Fed Governor Kevin Warsh, White House economist Kevin Hassett, and two unnamed candidates. This announcement follows weeks of public criticism by Trump toward Powell, accusing him of being slow to act on rate cuts. Trump has previously labeled Powell as “a numbskull” and “a complete moron,” blaming the Fed’s inaction for economic headwinds.
Fed at a Crossroads Amid Political Pressure
The Federal Reserve recently opted to hold interest rates steady, citing uncertainty caused by escalating trade tensions and ongoing tariff negotiations. However, the decision saw internal division—with Fed Governor Christopher Waller and Vice Chair Michelle Bowman dissenting in favor of a quarter-point cut.
Adding to the turmoil, Fed Governor Adriana Kugler submitted her resignation last week, opening another seat on the Board. Trump confirmed he plans to fill the role within days, albeit for just four months—suggesting the appointment may be a trial run for a longer-term Fed chair selection once Powell’s term expires in 2026.
Bessent’s Role Shifts to Trade Talks
Though out of the Fed chair race, Bessent remains central to the administration’s economic strategy. He is currently leading high-stakes trade negotiations, including a recent trip to Sweden for discussions with Chinese officials. The talks focus on whether to extend or revise existing U.S.-China tariff agreements before the critical August 12 deadline.
Meanwhile, economist Kevin Hassett confirmed that Bessent is still actively involved in vetting candidates for the next Fed chair, signaling a continued behind-the-scenes influence.
Key Takeaways:
Bessent out of the running for Fed Chair.
Kevin Warsh and Kevin Hassett among those still being considered.
Trump to appoint interim Fed Governor for four months, may lead to permanent role.
Fed faces internal division on rate policy amid economic uncertainty.
Trade and tariff tensions add to market volatility ahead of August deadline.
Stay tuned as this story develops and Trump’s next Fed nominee is announced.
