Treasury Secretary Bessent Is Not Aiming to Replace Fed’s Powell

Speculation Surrounding Treasury Secretary’s Future

Treasury Secretary Scott Bescent has suggested, albeit casually, that he might eventually succeed Jerome H. Powell as chairman of the Federal Reserve. However, he insists that he hasn’t pursued that position and is dedicated to his current role.

Having been with the Treasury since January, Bescent expressed in an exclusive interview that he finds his present position to be the most impactful.

“I do my best work in DC. I think it’s where I’m best utilized,” Bescent noted during his chat. “I hope the President thinks so too.”

There has been speculation in financial and political circles about Bescent as a possible successor to Powell. Still, sources indicate that he’s not keen on transitioning to the central bank.

“The secretary isn’t ‘campaigning,’ and he’s happy with his current position,” a source shared about internal discussions. “He has the job he desires.”

Another official involved in policy discussions mentioned that the idea of him moving to the Fed seems quite far-fetched.

“Bescent is the best Treasury Secretary we’ve seen since Hamilton,” this official stated. “So why would Trump want to push him into the Fed? It just doesn’t add up.”

White House aides, however, have indicated that they are considering current Federal Reserve Governors Christopher Waller and Michelle Bowman as potential successors for Powell when his term concludes in 2026.

Some officials acknowledged that promoting the current Treasury Secretary to lead the Federal Reserve might invite criticism—albeit unfounded—over potential threats to the central bank’s independence.

“There’s a good chance that suggesting Bescent for the Fed will be seen as a blow to its independence,” one official remarked. “It’s nonsense, but it’s not a battle everyone is eager to take on.”

Powell, who was initially appointed by President Trump in 2018 and reappointed by President Biden in 2021, is not anticipated to serve a third term. Trump has been vocal about his displeasure with Powell’s leadership, labeling him as “slow” amid rising inflation during Biden’s presidency and claiming that the Fed has fallen behind the curve.