US Treasury Secretary Scott Bessent is among the people who are being considered as the next Chairman of the Federal Reserve, President Donald Trump confirmed on Tuesday, but suggested that he is not among the top choices.
Since the intensification of Trump’s feud with Powell over not cutting interest rates despite lower inflation, Bessent has emerged as a top candidate to replace the Fed chair.
The US Treasury Secretary earlier in an interview on Bloomberg Television said that Powell should step down from the bank’s board when his term as chair ends in May 2026.
Who is Scott Bessent?
Scott Bessent, before assuming his role as the Treasury Secretary, spent his career in finance, working for macro investment billionaire George Soros and noted short seller Jim Chanos, as well as running his own hedge fund.
He was sworn into the federal post on January 28, after Donald Trump named him Treasury Secretary earlier this year.
At 62, Bessent has been in the global investment management business for 40 years, visiting 60 countries, interacting with international leaders and central bankers. He is regarded as a currency and fixed income specialist.
A South Carolina native, Bessent received a B.A. from Yale University with a major in political science. He was an adjunct professor at Yale University, where he taught economic history. From 1991 to 2000, he was managing partner of Soros Fund Management’s London office.
Bessent has said he has known the Trump family for 30 years through a friendship with Donald Trump’s late brother, Robert Trump.
He is also regarded as one of the main persons to have convinced Trump of pausing his tariffs for three months till July 9.
On Tuesday, the Treasury Secretary suggested that Jerome Powell should step down from Fed’s board when his term as chair is up in May 2026.
“Traditionally, the Fed chair also steps down as a governor,” Bessent said in an interview with Bloomberg Television Tuesday.
“There’s been a lot of talk of a shadow Fed chair causing confusion in advance of his or her nomination. And I can tell you, I think it’d be very confusing for the market for a former Fed chair to stay on also,” he added.
What did Donald Trump say about Scott Bessent?
Trump, speaking with reporters at the White House on Tuesday, acknowledged Bessent’s candidature as the next Fed Chair, but said he was not among the top contenders.
“He’s an option and he’s very good,” Trump told reporters.
Asked by a reporter whether Bessent was the top option, Trump responded, “Well, he’s not, because I like the job he’s doing.”