Scott Bessent, President-elect Trump's pick to lead the Treasury Department, said Tuesday that Federal Reserve Chairman Jerome Powell could lead the central bank for the remainder of his term.
“I completely agree, as the president said on Sunday, that Jay Powell will serve out his term,” Bessent said. CNBC.
His comments come after President Trump said on NBC's “Meet the Press” over the weekend that he would not seek to fire Powell when he takes office next year.
The Fed chairman, whose term ends in 2026, said last month that Trump's request “is not permitted under the law” for President Trump to fire or demote him or any other Fed director. He said he would not resign if that were the case.
Powell was appointed by President Trump during his first term in 2017, but almost immediately raised interest rates, angering the former president. The two have frequently clashed over Fed policy, and Trump has reportedly discussed firing Powell, according to Bloomberg.
The Fed chairman was reappointed by President Biden in 2021. Mr. Powell oversaw an aggressive rate-hike campaign that pushed interest rates to their highest levels in 20 years as inflation soared.
Earlier this year, Trump accused Powell, a lifelong Republican, of being “political” and suggested he might consider lowering rates to favor Democrats in the election.
The Fed ultimately decided to start cutting rates in September, and again at its November meeting, just days after the election. The central bank is widely expected to cut rates by another quarter of a percentage point when it meets again next week.
Mr. Bessent had previously floated the idea of naming a “shadow” Fed chair during Mr. Powell's remaining term. However, President Trump's nominee for the Treasury Department later withdrew the proposal.
