The Trump Administration Considers Replacing Jerome Powell, Scott Bessent Confirms

Jerome Powell's term as Chairman of the Federal Reserve seems to be coming to an end. As Treasury Secretary Scott Bessent revealed, the Trump administration is indeed looking for a replacement. In an interview with Bloomberg last week, Bessent stated that the administration will begin in the coming weeks and may announce a replacement in October. Powell's current term will expire in May 2026.

Although Bessent's name has been suggested as a top candidate. He quickly responded that he is not considering the position at this time, "I have the best job in DC," Bessent said, citing his work in completing the tax bill and continuing trade negotiations. But he said, "I will do what the President wants," indicating his willingness to take on this position if officially appointed.

The other candidates in the race are Kevin Hasset, Christopher Waller, and Kevin Warsh. Trump Calls for Immediate Interest Rate Cuts This action comes after increasing pressure from President Trump, who urged Powell to cut interest rates by at least 1%. Trump even sent a handwritten letter to Powell requesting his resignation. Bessent has added to the rising chorus, citing declining inflation and the mild impact of tariffs as a legitimate reason to cut interest rates.

The market is currently betting on an interest rate cut in July, especially after hints from Federal Reserve Governor Christopher Waller about the possibility of easing in the near future. Powell's leadership, under political pressure, is under close scrutiny as the Trump administration seeks a replacement for the Fed Chair, indicating the possibility of a change in U.S. monetary policy.