US President Donald Trump has dropped Treasury Secretary Scott Bessent from consideration as a replacement for Federal Reserve Chair Jerome Powell, citing Bessent’s desire to stay in his current role.
In an interview with CNBC, Trump said he loves Bessent but the secretary wants to remain where he is. This decision comes amid ongoing criticism of Powell and the Fed’s monetary policy, which has been criticized as being too slow.
Trump is now considering several other candidates for the position, including former Fed Governor Kevin Warsh, top White House Economist Kevin Hassett, and two unnamed individuals.
The move has raised concerns about potential political interference in the Fed’s decision-making process, particularly given Trump’s long-standing criticism of Powell. However, a lower interest rate could provide relief to struggling voters who cannot currently afford mortgages.
Last week, the Fed left interest rates unchanged, with some governors casting dissenting votes for a quarter-point cut. The decision was seen as a response to tariffs and other economic factors.
A new opening has emerged after Fed Governor Adriana Kugler submitted her resignation. Trump plans to announce his pick within weeks, although the position will be temporary lasting only four months.
Source: https://edition.cnn.com/2025/08/05/business/scott-bessent-fed-chair