White House weighs key Trump ally to lead central bank
Treasury secretary Scott Bessent has emerged as a leading candidate to replace Federal Reserve chairman Jerome Powell when his term expires in May 2026, according to sources familiar with Trump administration discussions.
Bloomberg reported that President Trump announced Friday he would name Powell’s successor “very soon,” ending months of speculation about the central bank’s leadership. While former Fed official Kevin Warsh has been considered the frontrunner, Bessent’s name has gained momentum among Trump advisers both inside and outside the administration.
“Given the amount of trust and confidence that the global financial community has in Scott Bessent, he’s an obvious candidate,” Tim Adams, president and CEO of the Institute of International Finance, told Bloomberg. Adams called Bessent “a dark horse candidate” while noting Warsh would also be a strong choice.
Bessent, who currently leads Trump’s economic agenda focusing on trade, taxes, and regulation, has been central to negotiations on a US-China trade deal. His role in these high-stakes discussions has elevated his profile within the administration.
“Scott Bessent proved he could implement President Trump’s agenda during an incredibly turbulent first six months,” said Steve Bannon, former White House chief strategist. “He’s not just the star of the cabinet, but a safe pair of hands for global capital markets.”
The selection comes as Trump continues pressuring the Fed to cut interest rates. The president, who first nominated Powell in 2017, has regularly criticized Powell for being too slow to reduce borrowing costs. Fed officials have maintained steady rates in 2025, citing economic uncertainty from Trump’s tariff policies.
When asked for comment, Bessent said, “I have the best job in Washington. The president will decide who’s best for the economy and the American people.” A senior administration official disputed the reporting without providing specifics.
Traditionally, the Treasury secretary plays a key role in selecting Fed chairs, though it remains unclear whether Bessent would recuse himself from the process. Other potential candidates include White House National Economic Council director Kevin Hassett, Fed governor Christopher Waller, and former World Bank president David Malpass.
The next Fed chair will face the critical task of maintaining the central bank’s independence while navigating Trump’s expectations for monetary policy. Both Bessent and Warsh “would be given the benefit of the doubt from the financial community” regarding Fed independence, Adams noted.
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