Michaela
U.S. Treasury Secretary Scott Bessent has said the White House plans to start evaluating potential successors to Federal Reserve Chair Jerome Powell this fall, well ahead of Powell’s term ending in May 2026.
During an interview with Bloomberg TV, while visiting Argentina, Bessent explained that the Trump administration would have a six-month window to evaluate candidates before Powell’s term concludes. He provided no additional details regarding the process.
Bessent expressed that he had no concerns about President Donald Trump removing Powell or interfering with the Federal Reserve’s independence. However, he did highlight the potential for further dialogue on the Fed’s role in bank regulation.
“I’ve repeatedly said the Fed has two duties, and I believe that monetary policy is a jewel box that’s got to be preserved. And then they have regulatory policies. And I think we can have more of a discussion, because the Fed is one among three bank regulators. There’s the Fed, Comptroller of the Currency, and the FDIC. So I think it’s very easy to delineate between the two,” Bessent stated.
U.S. President Donald Trump has consistently urged the Federal Reserve to reduce interest rates. “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS,” President Trump wrote in a post on his social media platform, Truth Social.
Additionally, Bessent shared that he had regular weekly breakfasts with Powell, where they discussed a wide range of topics. When asked about contingency plans for potential financial stability risks, Bessent stated that they were “a long way from that” scenario.
Bessent mentioned that he had met with Powell just last week during a visit to the Federal Reserve, but he did not hear any significant concerns regarding the recent developments in bond markets. “It seems like business as usual,” he added.
After President Trump secured victory in the November 2024 election, the Federal Reserve Chair stated he would not step down from his position—even if requested by President Trump. “Not permitted under the law,” Powell said at the time, reaffirming his intent to serve out the remainder of his term.
Tensions between President Trump and Powell have lingered for years, dating back to Trump’s first term in office. Although Trump appointed Powell in 2017, he frequently voiced dissatisfaction with Powell’s approach to monetary policy, accusing him of being too slow to cut interest rates.
At the core of the dispute is a deeper clash over the Fed’s independence. While Powell has maintained the central bank’s autonomy, Trump has often hinted that the White House should exert more influence over interest rate decisions—challenging long-standing norms around the Fed’s role in economic policymaking.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
