In a major shake-up, former President Donald Trump has officially pulled Treasury Secretary Scott Bessent from the shortlist to replace Fed Chair Jerome Powell — confirming that Bessent declined the role to stay focused on his current position.
💬 Trump to CNBC:** “Scott’s great — but he’s happy where he is. I asked him last night, and he said, ‘Nope, not for me.’ So he’s off the list.”
New Names in the Mix
With Bessent out, Trump’s updated Fed chair contenders now include:
🧠 Kevin Warsh– Former Fed Governor with hawkish credentials
📊 Kevin Hassett– Former White House economist under Trump
❓ Two other **unnamed candidates** reportedly being vetted quietly
This latest move comes as Trump continues to hammer Powell for refusing to cut interest rates aggressively. Trump hasn’t held back, calling Powell everything from “a numbskull” to “a complete moron,” and has made it clear he wants a Fed chief who will **slash rates fast** to jumpstart growth ahead of the 2026 cycle.
📉 Fed in Turmoil
The Fed recently opted to hold interest rates steady, citing **trade tensions** and **economic uncertainty**. But the decision wasn’t without drama:
👎Governor Christopher Wallerand "Vice Chair Michelle Bowma"dissented — they wanted a cut now
🤯 "Governor Adriana Kugler resigned", unexpectedly vacating another key seat at the Fed
Trump says he’ll "fill Kugler’s seat within days", but only for a "4-month interim term" — a strategic move that could serve as a trial run for his pick to permanently replace Powell when his term expires in 2026.
🌍 Bessent Still in the Game — Just Not at the Fed
Even though Bessent’s Fed chapter is closed (for now), he remains central to Trump’s economic strategy. He’s currently leading **high-stakes trade negotiations** with China, with the latest round of talks unfolding in Sweden this week.
📅 'Mark Your Calendar:' The "August 12'deadline looms large — that’s when Trump must decide whether to extend or overhaul existing U.S.-China tariffs.
Meanwhile," Kevin Hassett confirmed"that Bessent is still **involved behind the scenes**, helping vet potential Fed candidates and advising on broader economic policy.
Trump’s Fed shake-up is far from over, and with the economy in flux, rate cuts in limbo, and new names rising, all eyes are on Trump’s next move.
