“Formal process” underway to name Fed Chair successor, Bessent says

Treasury Secretary Scott Bessent said Tuesday that the administration has begun a “formal process” to name Federal Reserve Chairman Jerome Powell’s successor.

“There are a lot of great candidates, and we’ll see how rapidly it progresses,” Bessent said in an interview with Bloomberg Surveillance. 

TRUMP CALLS FED CHAIR POWELL A ‘KNUCKLEHEAD,’ SAYS INTEREST RATES SHOULD BE BELOW 1%

When asked about the timeline for announcing a new Fed chair, Bessent said it is “President Donald Trump’s decision, and it will move at his speed.”

Bessent did not share the names of those in consideration for the role but said that the administration was considering “a lot of good candidates inside and outside the Federal Reserve.”

The Treasury secretary also said that Powell should step down from his role on the Federal Reserve Board of Governors following the completion of his term as Fed chair.

“There’s been a lot of talk about a shadow Fed chair causing confusion in advance of his or her nomination and I can tell you, I think it would be very confusing for the market for a former Fed chair to stay on as well,” Bessent said.

In the interim, Bessent said the president does not plan on firing Powell before the term ends in May 2026.

TRUMP CALLS FOR FED CHAIR JEROME POWELL TO IMMEDIATELY RESIGN

Last month, Trump revealed, though, that he is evaluating “three or four” candidates to succeed Powell. Tensions between Powell and Trump have stemmed from the central bank’s interest rate decisions and broader monetary strategy. 

Trump has singled out Powell for not cutting rates, which he says has cost the nation “hundreds of billions of dollars” and for cost overruns at the central bank’s headquarters. 

Recently, the president has blamed Powell for renovation cost overruns at the Federal Reserve’s two main office buildings.

The renovation is slated to cost approximately $2.5 billion. The Fed, not taxpayers, funds the renovation.

Following a career in investment banking, Powell was appointed to the Federal Reserve by former President Barack Obama. Trump nominated Powell to his current role as Fed chair in 2017.

Here’s a look at who could potentially replace Powell.

Treasury Secretary Scott Bessent

Bessent has downplayed rumors that he could be selected by Trump to lead the Federal Reserve, telling FOX Business’ Maria Bartiromo that he remains satisfied with his current role in the administration.

“We have a lot of great candidates for the Federal Reserve. I think I have the best job in Washington. I get to interact with the president. The Cabinet that he’s chosen is fantastic, and being part of that Cabinet is the dream of a lifetime for me,” Bessent said on “Mornings with Maria.”

TRUMP EYES CABINET MEMBER TO REPLACE JEROME POWELL AT THE FED

“But I will go where the president thinks that I am best suited,” he added.

Bessent, a former hedge fund chief, quickly proved that he could broker deals on Trump’s behalf. Earlier this year, he joined U.S. Trade Representative Jamieson Greer in Switzerland to find a soft landing amid trade barbs with China. 

Director of the National Economic Council Kevin Hassett

Kevin Hassett currently serves as the director of the White House’s National Economic Council and has been a loyal defender of Trump’s economic agenda. During the first Trump administration, Hassett served as the president’s top economist, tasked with navigating tax policy and trade battles. 

Hassett told reporters earlier this year that Trump “will continue to study” options on removing Powell from the Fed post.

Federal Reserve Vice Chair Michelle Bowman

Michelle Bowman currently serves as the Federal Reserve’s vice chair for supervision, a role that places her at the helm of the Fed’s regulatory agenda and oversight of the nation’s most powerful banks. The position aligns closely with Trump’s priorities, particularly his focus on reducing waste, fraud and regulatory burdens.

Bowman recently broke with Powell and called for a cut in rates. 

If tapped and confirmed by Congress, Bowman would become the second woman to chair the central bank. Janet Yellen was the first woman to hold the role. 

Former Federal Reserve Board Governor Kevin Warsh

Kevin Warsh was among the leading candidates to replace Yellen in 2018, before Trump ultimately appointed Powell. More recently, Warsh has also been considered a contender for Treasury secretary in the second Trump administration.

TRUMP SLAMS FED CHAIR POWELL FOR NOT CUTTING RATES: ‘AVERAGE MENTALLY PERSON’

In 2006, the former Morgan Stanley banker became the youngest person to join the Fed board. Though he stepped down from the post in 2011, Warsh was widely recognized as the Fed’s key liaison to Wall Street during the 2008 financial crisis. He has also served as an economic advisor to President George W. Bush.

Federal Reserve Governor Christopher Waller

Christopher Waller, considered the veteran academic of the group, was tapped by Trump to join the Fed Board in 2020. Waller has previously said he was in favor of cutting rates in order to prevent a negative impact on the nation’s labor market. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Similar to Bowman, Waller has largely voted along with Powell. He has echoed the importance of maintaining an independent Federal Reserve.