Trump Ready to Replace The Fed Chairman, Kevin-Bessent Named Strong Candidate
United States President Donald Trump is ready to replace The Fed Chairman Jerome Powell, whose term will expire in May 2026. According to Bloomberg, strong candidates to succeed Powell include Former Fed Official Kevin Warsh and Treasury Secretary Scott Bessent.
According to Nasdaq, Bessent's emergence as a candidate allows The Fed to have strong leadership in finance, trade, and fiscal policy. This is because the US Treasury Secretary has a role in pushing for tax and regulatory changes.
Bessent is also said to potentially facilitate closer coordination between the central bank and the government in economic strategy. This is evidenced by Bessent's important role in negotiating the US-China trade deal, which is one of Trump's key policies.
Former White House Chief Strategist Steve Bannon stated that Bessent has proven he can implement President Trump’s agenda during the first tumultuous six months. This makes him stand out in the cabinet.
“I have the best job in Washington. The President will decide who is best for the economy and the American people,” said Bessent.
On the other hand, Warsh is a strong candidate because he is known to be tough on inflation, respected among policymakers, and has a conservative economic track record that aligns with part of Trump’s vision.
Warsh, who does not have an economics degree, was an advisor on Trump’s transition team in 2024. Reports indicate that Trump is considering him for Treasury Secretary during his second term and to run The Fed during his first term.
Nonetheless, there are other names mentioned as potential candidates for the chair of the US central bank, including White House National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller, and Former World Bank President David Malpass.
