Treasury Secretary Scott Bescent announced on Tuesday that they have initiated a “formal process” to identify a successor for Federal Reserve Chairman Jerome Powell.
“We have several strong candidates. It’s a matter of how quickly things unfold. Ultimately, it’s President Trump’s choice, and it will proceed at his pace,” Bescent shared during an interview with Bloomberg TV.
Bescent is reportedly among a shortlist that includes former Fed governor Kevin Wahsh and the director of the National Economic Council. He dismissed the idea of appointing a “shadow” chair before Powell’s term concludes in May of next year.
During the Bloomberg interview, he noted, “There’s been plenty of talk about a shadowy stool causing confusion ahead of any appointment. Honestly, I think the former Fed chair might be a bit confused as well,” he commented.
He avoided addressing whether holding dual roles at the Treasury and the Fed was necessary for the position of the central bank’s leadership.
“I believe I’m doing a commendable job. My commitment remains to do what President Trump desires,” Bescent stated.
“I’m involved in the decision-making, but ultimately, it comes down to President Trump,” he added.
Jerome Powell, originally nominated by Trump in 2018 and reappointed by former President Biden, has expressed no intention of stepping down.
Bescent clarified that the White House is “not attempting to fire” the Fed chairman.
On Monday, Trump reiterated his call for Powell to lower interest rates, pointing to low inflation levels. He maintained that rates should be kept below 1%.
“We have a terrible Fed chairperson. Really bad,” Trump told reporters at the White House on Monday. “I tried to be nice to him, but that didn’t work. He’s a knucklehead. Yes, a knucklehead—a foolish guy. That’s the truth.”
The administration has also expressed no interest in pursuing a Congressional inquiry regarding allegations that Powell misled the Senate committee concerning a $2.5 billion renovation project at the Fed’s headquarters.
Reports from late April indicated that the central bank was embroiled in an extensive renovation that had far exceeded its projected budget by over $700 million.
On Monday, Powell was reportedly instructing General Michael Horowitz from the Inspector General’s office to look into the costs of the renovations.
