Report: Treasury Secretary Scott Bessent not eyeing Fed chair role

In the midst of discussions about who will succeed Jerome H. Powell as chair of the Federal Reserve, Treasury Secretary Scott Bessent has made it clear he is not pursuing the role.

The Trump administration is considering Federal Reserve Governors Christopher Waller and Michelle Bowman as Powell’s replacement when his term concludes in 2026, as Breitbart reports.

Bessent, who has been serving as Treasury secretary since January, is focused on his duties and dismissed any interest in shifting to the Federal Reserve. Despite speculation circulating in financial and political spheres naming him as a potential candidate, Bessent has emphasized his commitment to his current position.

Bessent committed to current role

Reports suggest that Bessent’s decision to rule himself out of the running for the Federal Reserve chair is due to his satisfaction with his current job. As he remarked, “I have the best job in D.C. I think it is my highest and best use.” He then added his hope that President Trump shares this view.

However, the possibility of appointing a Treasury secretary as the head of the Federal Reserve had given rise to some concerns. Such a move could potentially prompt worries regarding the independence of the central bank. Addressing this, an unnamed official commented, “Putting Bessent into the Fed would likely raise allegations that it would compromise the Fed’s independence. That’s nonsense—but it’s also not a fight anyone needs to have.”

As speculation about the next Fed chair continues, the administration’s attention has turned toward Waller and Bowman. Both are considered likely candidates to take over the helm from Powell.

Powell’s tenure under microscope

Powell was initially appointed by President Donald Trump in 2018 and subsequently reappointed by President Biden in 2021. His leadership has been a topic of criticism and praise over the years, with Trump publicly critiquing Powell’s handling of interest rates and other economic strategies.

Trump’s dissatisfaction with Powell was evident when he referred to him in derogatory terms, including calling him a “numbskull” for his approach to interest rate cuts. This criticism underscores the longstanding tensions between Powell’s decision-making and the administration’s economic objectives.

An official involved in policy discussions offered praise for Bessent, stating that he is “the best Treasury Secretary we’ve had since Hamilton.” They emphasized the illogicality of President Trump pushing him out of his current role into the Federal Reserve.

Potential candidates emerge

As the administration looks ahead, Waller and Bowman stand out as potential successors for the Federal Reserve chair. Their candidacies reflect the administration’s interest in maintaining continuity and expertise at the Federal Reserve.

All eyes remain on how this transition will unfold and who will ultimately take on the critical role of steering the nation’s monetary policy in the coming years. The decision will be scrutinized not just for its economic implications, but also for what it indicates about the administration’s priorities and outlook on fiscal strategy.

Ultimately, while Bessent’s commitment to his current role seems firm, the speculation over his potential candidacy highlights the continual intrigue surrounding such pivotal government positions. As the administration contemplates its next steps, those within and beyond the financial world will be watching closely.