President Donald Trump has confirmed that he has decided not to nominate Secretary of the Treasury Scott Bessent as a replacement for Federal Reserve Chair Jerome Powell.
Trump, who has frequently criticized Powell for not accelerating the reduction of interest rates, stated on Tuesday that Bessent prefers to remain in his current position. “I love Scott, but he wants to stay where he is,” Trump said during an interview with CNBC. He added that Bessent has been performing “a great job” and had recently reaffirmed his desire to stay in his role.
The president indicated that he currently has four potential candidates in mind to succeed Powell, whose term is set to end in May. Among them are Kevin Warsh, a former member of the Fed’s board of governors, and Kevin Hassett, who serves as the director of the White House National Economic Council.
Trump also mentioned that he could use the opportunity to appoint his preferred candidate for chair before Powell’s term concludes, taking advantage of the recent early resignation of Adriana D Kugler, one of the seven Fed governors.
“I’m going to make the decision soon,” Trump said.
His repeated criticisms of Powell, whom he has mockingly referred to as “too late,” have raised concerns about the Federal Reserve’s ability to maintain its independence. Investors consider this independence essential to the stability of the U.S. economy.
Earlier this month, reports surfaced that Trump had inquired with Republican lawmakers about the possibility of removing the Fed chair. This led to a 0.7 percent drop in the S&P 500 index. However, U.S. stocks quickly rebounded after Trump denied any intention to remove Powell prematurely.
According to existing legislation and Supreme Court precedent, the president can only remove the Fed chair “for cause,” which is generally understood to require evidence of corruption or misconduct.
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