Treasury Secretary Scott Bessent is not in the running to replace Jerome Powell as head of the Federal Reserve, President Donald Trump said in a new interview.
Trump, speaking in an interview with CNBC’s “Squawk Box” on Aug. 5, stated that he has narrowed the field of Fed chairs to four individuals.
Bessent had long been considered a frontrunner to succeed Powell when his term expires in May 2026, but the Treasury secretary removed himself from the list.
“Well, I love Scott, but he wants to stay where he is,” Trump said. “I asked him just last night, ‘Is this something you want?’ He said, ’Nope, I want to stay where I am.‘ He actually said, ‘I want to work with you. It’s such an honor.’ I said, ‘That’s very nice. I appreciate that.’”
The president complimented National Economic Council Director Kevin Hassett and former Fed Governor Kevin Warsh—two leading contenders to head the U.S. central bank next year—saying they are “both good.”
However, he cautioned that individuals could appear well-suited for the position until they are inserted into the role.
“Sometimes, they’re good until you put them in,” Trump said.
According to betting website Polymarket, Warsh is seen as the leading candidate, with 34 percent odds. Warsh has been a frequent Fed critic, recently suggesting a “regime change” at the century-old central bank.
“We need regime change in the conduct of policy,” Warsh said during a July 17 interview on CNBC’s “Squawk Box.” “The credibility deficit lies with the incumbents that are at the Fed, in my view.”
Hassett sits in second place with 17 percent odds.
In an interview with NBC’s “Meet the Press” on Aug. 3, Hassett noted that Trump and Bessent have been on “an active search” to find a suitable person to helm the Federal Reserve System.
“They’re going to go through a list of names. And I’m sure the president will pick the best available person,” Hassett said.
“We’ll have to see if he chooses me. But I think that I have the best job in the world, and I’m really well placed at the National Economic Council.”
When asked whether the next Fed chair should take cues from the White House or broader economic conditions, Hassett said that the central bank chief “should listen to all the voices, especially their critics.” This, he says, will encourage the monetary authorities to examine what they are doing right and wrong.
Hassett also says the Fed maintains a “transparency responsibility” that Powell “has fallen down on a little bit.”
“If you’re going to come out and say, for example, that you think that tariffs are going to cause inflation, then, for goodness’ sake, you should put out a model that explains how much inflation and why you think that way,” he said.
Fed Governor Christopher Waller, who was one of two dissenting votes at last month’s Federal Open Market Committee policy meeting, also maintains a 15 percent chance of being selected by Trump.
Waller, alongside Fed Vice Chair for Supervision Michele Bowman, has been an advocate of lowering interest rates to prevent a further deterioration of the U.S. labor market.
In a July 18 interview with Bloomberg Television, Waller stated that he would accept an offer to lead the Federal Reserve if asked.
“In 2019, the president contacted me and said, ‘Would you serve?’ And I said yes,” Waller stated. “If the president contacted me and said, ‘I want you to serve,’ I would do it. But he has not contacted me.”
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The president’s remarks come shortly after Fed Governor Adriana Kugler announced her resignation.
Trump, calling the announcement a “pleasant surprise,” confirmed that he will soon announce her replacement. The nominee will complete Kugler’s remaining four months on the board.
“But a lot of people say that when you do that, why don’t you just pick the person who’s going to head up the Fed?” Trump said. “That’s a possibility, too.”
Powell, chosen by Trump to head the Fed in 2017 and later confirmed by the Senate in February 2018, has been regularly criticized by Trump and senior administration officials.
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The president again criticized Powell’s performance as the central bank chief and claimed that the Fed chair had pledged to him when he was nominated in 2017 that he would keep interest rates low.
“Jay Powell is highly political … and I call him ’too late,’” Trump told CNBC, adding, “He always has been, except when it came to lowering interest rates before the election.”
Powell has said the Fed would have lowered interest rates if it were not for the Trump administration’s tariff plans.
The Federal Reserve initiated its easing cycle in September 2024, following through on a super-sized half-point interest rate cut. Monetary policymakers lowered rates two more times and then hit the pause button in January.
Last week, the Fed voted to leave its benchmark federal funds rate—a key rate that influences business, consumer, and government borrowing costs—in a target range of 4.25 to 4.5 percent.
Because the U.S. economy remains in a solid position, Powell and his colleagues have signaled they can afford to be patient as they wait for more data following the implementation of U.S. tariffs.
Investors are overwhelmingly expecting the Fed to restart its rate-cutting cycle in September and agree to a quarter-point rate cut.
The next two-day policy meeting will take place on Sept. 16 and 17.
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