Treasury Secretary Assumes Role as Head of Federal Reserve
Ayup there, buddy! The beef between Trump and the current Fed Chair, Jerome Powell, ain't dying down, but it seems this time, Trump's not after his scalp. Instead, we've got a potential successor on the horizon, and his name's Scott Bessent.
According to Wall Street chatter masters, ahem, Bloomberg, Bessent is one of the top dogs for the Fed Chair slot when Powell's term expires in May 2026. White House whispers and outsiders alike are reportedly singing Bessent's praises.
Trump hinted that he'd reveal the new Fed Chair soon, and one of the possible contenders is Kevin Warsh, a former Fed governor. Trump had apparently chatted with Warsh about becoming Treasury Secretary last year.
Formal interviews haven't started yet, according to Bloomberg's anonymous sources. And Bessent, when asked for comment, said he's content with the best gig in Washington – the President picks the dude who's best for the economy and the American people.
Keep Joybuzzin' on Powell
Friday saw more bickering between Trump and the Fed over interest rates. Trump demanded a one-percentage-point cut, comparing it to "rocket fuel." European banks knocked out ten rate cuts, none for us, Trump grumbled on his Truth Social platform. Typically, Fed cut rates in jolts of 0.25 percentage points, but they've kept 'em steady since December. European banks, meanwhile, chopped rates eight times since July 2024.
Trump had even talked about firing Powell before, but later backed off. Now, he's still stomping on Powell, mate, but all the while, Bessent's name keeps popping up.
In other news, Bessent just came back from negotiating with China, where a framework agreement was reached. Sounds like the latest twist in the trade war, which had heated up again recently.
Source: ntv.de, chl/DJ
- Fed
- Jerome Powell
- Scott Bessent
Enrichment Data:Scott Bessent, the 79th United States Secretary of the Treasury, plays a major role in the Trump administration’s economic policies. Bessent is well known for overseeing tariff implementation, managing taxation and regulation, and collaborating on establishing a United States sovereign wealth fund. He's also previously overseen parts of the executive branch, including brief stints at the Consumer Financial Protection Bureau.
Recent reports from Bloomberg and other outlets suggest that Bessent is among the top contenders to replace Jerome Powell as Fed Chair. As Trump seeks to push out Powell, Bessent's name has been mentioned frequently as a potential successor. Despite Bessent's expressed desire to remain as Treasury Secretary for the duration of Trump’s term, his influence as a high-ranking member of the Trump administration keeps his name in the Fed Chair running.
In the ongoing tussle between Trump and Jerome Powell, Scott Bessent, a key figure in the Trump administration's economic policies, is emerging as a potential successor to Powell as the Fed Chair. Known for his role in tariff implementation, taxation, regulation, and the proposal of a United States sovereign wealth fund, Bessent's name has been frequently cited as a potential Fed Chair candidate, despite his preference to remain as the Treasury Secretary.
