Trump praised Scott Bessent as an option to replace Jerome Powell, but said the Treasury Secretary isn't at the top of the list
Chip Somodevilla/Getty Images
There's few signs that President Donald Trump's scorched-earth campaign against Federal Reserve Chair Jerome Powell is ending soon. Now his administration is going public with the search for Powell's replacement once his term as central bank chief ends in May 2026.
Trump has attacked Powell almost non-stop through the summer for holding steady on interest rates. He's openly mused about firing him, a step that could roil financial markets and investors' confidence in the sturdiness of U.S. government bonds.
Trump acknowledged Treasury Secretary Scott Bessent was among the candidates he was considering to eventually replace Powell. Bessent is viewed as a figure who can assuage global markets during a period of tariff-fueled uncertainty.
"He's an option. I think he's very good," Trump said on Wednesday, but noted he's not at the top of his list since Bessent was doing good work in his current role. "I do like the job he's done. So in that sense, probably not that much of an option."
Bessent has previously said that the Trump administration wouldn't begin interviewing candidates for Fed chief until September at the earliest. Another possible replacement for Powell is Kevin Hassett, now the top economic advisor to Trump.
But there are signs they are accelerating their timetable given the intensity of Trump's criticisms against Powell.
"There's a formal process that's already starting. There are a lot of great candidates," Bessent told Bloomberg TV earlier in the day. "We'll see how rapidly it progresses. It's President Trump's decision and it'll move at his speed."
Still, some conservatives speculated Trump was about to make a move against Powell.
"Jerome Powell is going to be fired. Firing is imminent," Rep. Anna Paulina Luna of Florida wrote on X $TWTR. She was among the 11 GOP lawmakers that visited Trump on Tuesday evening to resolve an intraparty standoff over crypto legislation in Congress.
A spokesperson for the Federal Reserve declined to comment. Powell has maintained that he will serve out the rest of his term as Fed chief.
In the past week, the Trump administration has seized on an ongoing project to upgrade the Fed's headquarters in Washington D.C. to open a new front against Powell. Trump assailed Powell on Tuesday for the swelling cost of the renovations underway.
"The one thing I didn’t see him as a guy that needed a palace to live in,” Trump told reporters.
“But the one thing I would have never guessed is that he would be spending two and a half billion dollars to build a little extension onto the Fed,” he said. When asked if the price tag was a fireable offense, Trump responded: "I think it sort of is."
Earlier this week, Powell requested that the Fed's new inspector general, Michael Horowitz, review the project. Powell did receive back-up from one powerful figure on Wall Street: JP Morgan Chase CEO Jamie Dimon.
“I think the independence of the Fed is absolutely critical,” Dimon told reporters, according to the Wall Street Journal. “Playing around with the Fed can have adverse consequences, the absolute opposite of what you might be hoping for.”
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
