In a surprising political twist, former U.S. President Donald Trump has officially taken Treasury Secretary Scott Bessent off the shortlist to replace Federal Reserve Chair Jerome Powell. The reason? Bessent himself turned down the opportunity.
"Scott's great, but he's happy where he is," Trump told CNBC. "I asked him last night, and he said, 'Nope, not for me.' So he's off the list."
New Contenders Emerge
With Bessent out, Trump is now considering fresh candidates for the Fed's top post. The updated list reportedly includes:
.Kevin Warsh - Former Federal Reserve Governor
.Kevin Hassett - Former White House Economist
.Two additional unnamed candidates
This shake-up comes as Trump continues his public criticism of Jerome Powell, accusing the current Fed Chair of being too slow to cut interest rates. Trump is calling for a more aggressive approach to monetary easing in order to stimulate economic growth.
Fed Under Pressure
The Federal Reserve recently decided to keep rates steady, citing global uncertainty and ongoing trade tensions. But the vote was not unanimous:
.Governor Christopher Waller and Vice Chair Michelle Bowman pushed for a rate cut
.Governor Adriana Kugler has just resigned, opening another seat at the table
Trump aims to fill this new vacancy within days-reportedly on a temporary 4-month basis-as a potential trial run for a permanent replacement when Powell's term ends in 2026.
Bessent Still Playing a Key Role
Although he's no longer in the Fed Chair race, Scott Bessent remains a major player in international economic strategy. He is currently leading high-stakes trade talks with China in Sweden.
All eyes are on the upcoming August 12deadline, which could decide whether current U.S.-China tariffs are extended or renegotiated. According to Kevin Hassett, Bessent is still actively involved behind the scenes-assisting with the vetting process of potential Fed nominees.
Summary:
.Scott Bessent declines Fed Chair role
.Trump unveils new candidates amid calls for faster rate cuts
.Fed faces internal division and a key resignation
.Bessent continues to lead critical trade negotiations with China
