17 August 5, 2025 | Washington, D.C.
In a key development shaking up U.S. economic leadership, former President Donald Trump confirmed that Treasury Secretary Scott Bessent is no longer in the running to replace Federal Reserve Chair Jerome Powell.
"I love Scott, but he wants to stay where he is," Trump told CNBC. "I'll take him off... I asked him just last night, 'Is this something you want?' He said, 'Nope."
With Bessent stepping aside, Trump's updated shortlist now includes:
.Kevin Warsh, former Fed Governor
.Kevin Hassett, White House economist
.Two unnamed candidates, still under consideration
🧠Behind the Decision
While no longer a candidate for the Fed chair, Bessent remains highly influential. He's now leading critical trade negotiations most recently in Sweden, where he met with Chinese officials ahead of the August 12 tariff deal deadline.
Meanwhile, economist Kevin Hassett revealed that Bessent is still actively involved in evaluating potential Fed nominees, indicating his continued influence behind the scenes.
🔑Key Highlights
.Bessent officially out of Fed Chair race
.Trump may appoint an interim Fed Governor for four months
.Fed remains divided on rate policy, heightening market uncertainty
.U.S.-China tariff negotiations intensify ahead of August deadline
.Increased volatility expected across equities and crypto markets
Market Impact:
As the Fed faces internal disagreements over interest rate policy, combined with growing tariff tensions, traders should prepare for increased volatility. Keep an eye on Trump's final Fed pick a decisionthat could reshape monetary policy for months to come.
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