Scott Bessent Says ‘Formal Process’ To Replace Fed Chair Jerome Powell Has Begun

Treasury Secretary Scott Bessent revealed on Tuesday that the formal process to find a successor to Jerome Powell has begun, as the Trump administration continues to intensify its pressure on the Federal Reserve Chair.

In an interview with Bloomberg, Bessent provided a glimpse into the gears of change currently spinning within the Trump administration regarding the Federal Reserve.

“There’s a formal process that’s already starting,” Bessent said when asked if the Trump administration had identified a nominee for the top job at the Federal Reserve.

“There are a lot of good candidates inside and outside the Federal Reserve,” he added, but refrained from revealing whether he’s one of the contenders to lead the central bank.

Meanwhile, U.S. equities edged lower on Tuesday after inflation surged again.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.05%, while the Invesco QQQ Trust (QQQ) gained 0.54%. Stocktwits data shows retail sentiment around the S&P 500 ETF has been in the ‘bullish’ territory over the past week.

Like President Donald Trump, Bessent was not subtle either about his opposition to Powell’s role in the central bank’s decision-making chain.

“Traditionally, the Fed chair also steps down as a governor. There’s been a lot of talk of a shadow Fed chair causing confusion in advance of his or her nomination. And I can tell you, I think it’d be very confusing for the market for a former Fed chair to stay on also,” Bessent said.

Earlier this month, Bessent hinted at hopes in the administration that Powell would leave the Fed altogether when his term as the Chair expires in May 2026.

Powell is also on the Fed’s Board of Governors, and his term as a governor would expire in 2028. If he does not leave the Fed after the end of his term as the Fed Chair, the Trump administration would be able to fill only one seat.

On Monday, Powell called for a review into the Fed’s $2.5 billion building expansion project, after sharp criticism from President Trump and his administration.

Trump, who has been publicly criticizing Powell over their disagreement on interest rate policy, attacked the Fed Chair again over the weekend.

“Jerome Powell has been very bad for our country. We should have the lowest interest rates on Earth and we don't,” he told reporters.

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