Bessent has been at the forefront of negotiations on a US-China trade deal, arguably the most important of the pacts the president is seeking to forge as part of his effort to reshape the global trade landscape.
“Scott Bessent proved he could implement President Trump’s agenda during an incredibly turbulent first six months,” said Steve Bannon, former chief White House strategist and outside adviser to the president. “He’s not just the star of the cabinet, but a safe pair of hands for global capital markets.”
The president, who first nominated Powell to the job in 2017, has regularly complained that the Fed chief has been too reluctant to cut borrowing costs. Trump pushed Powell to lower interest rates in a White House meeting last month.
Powell and Fed officials have held interest rates steady in 2025, arguing a patient approach to policy is appropriate amid economic uncertainty caused by Trump’s expanded and evolving use of tariffs. Fed policymakers have said they expect the announced tariffs to weigh on economic growth and boost inflation.
Whoever the Senate confirms for the post will have to prove to the world that the Fed’s independence from political meddling remains intact. Trump has said many times that Powell is making a mistake by not lowering rates, and has previously said that he should have a say on rate decisions, raising questions over whether markets would see the next pick as beholden to him.
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Bessent or Warsh “would be given the benefit of the doubt from the financial community” that they would preserve the independence of the Fed’s rate-setting authority, IIF’s Adams said.
Economist and Trump ally Arthur Laffer said Bessent “is wonderful, but he already has a job. And his specialty is not monetary policy.”
“As I told the president, I think Kevin Warsh is just perfect for the job,” he said.
Other candidates whose names have previously been floated for Fed chair include Kevin Hassett, the White House’s National Economic Council director, Christopher Waller, a Fed governor, and former World Bank President David Malpass.
