President Donald Trump has revealed he is considering Scott Bessent, his Treasury Secretary, as a potential candidate to replace Federal Reserve Chair Jerome Powell when his term expires in May 2026.
Speaking to business leaders during his state visit to Japan, Trump hinted at the possibility while simultaneously casting doubt on whether Bessent would take the job.
“I’m thinking about him for the Fed,” Trump said. “But he won’t take the job — he likes being at the Treasury.”
Trump praised Bessent’s media savvy and market-calming demeanor, contrasting it with his own unpredictable effect on markets.
“How good is he on television? He soothes the markets — I don’t soothe the markets; I sometimes disturb the markets,” Trump joked.
Five Finalists on the Shortlist
Bessent confirmed separately that he is leading the vetting process for Powell’s replacement and has narrowed it to five candidates:
- Christopher Waller – Current Fed Governor
- Michelle Bowman – Current Fed Governor
- Kevin Warsh – Former Fed Governor
- Kevin Hassett – Former White House Economic Adviser
- Rick Rieder – Senior MD, BlackRock
He said he plans to conduct interviews and submit final recommendations to Trump after Thanksgiving.
Trump Renews Criticism of Powell
In a separate media interaction aboard Air Force One, Trump reignited his long-running criticism of Powell, calling him “not at all smart” and blaming him for not lowering rates sooner.
“We have a person that’s not at all smart right now,” Trump said. “He should have been much lower, much sooner.”
Trump’s remarks follow months of labeling Powell a “numbskull” and “too-late Powell,” fueling speculation that the president may seek to replace him before the official end of his term.
Fed Rate Cut Decision Imminent
The Federal Reserve’s next policy decision is due Wednesday, and markets are widely expecting a 25-basis-point rate cut, the second in as many meetings. However, inflation risks continue to cloud the Fed’s outlook, and officials have warned they may pivot if price pressures rise again.
Powell Also Under Fire for Fed Renovation Costs
Trump also recently blasted Powell over the Federal Reserve’s costly building renovations, alleging mismanagement.
“I am considering allowing a major lawsuit against Powell to proceed,” Trump posted on Truth Social in August, citing “horrible, grossly incompetent” oversight of the Fed’s modernization project.
The central bank has said the unexpected costs stem from necessary redesigns, asbestos and toxic soil remediation, and the age of the buildings.
What’s Next?
While Trump’s tone on Bessent appeared partly joking, the possibility of him nominating his Treasury Secretary to the top central bank role will further intensify scrutiny on the Fed, which remains under pressure from both inflation risks and political crossfire heading into 2026.
A Federal Reserve spokesperson declined to comment on Trump’s remarks.
Related: What are prediction markets? The booming industry bypassing US gambling laws
