NEW YORK: US Treasury Secretary Scott Bessent suggested that Federal Reserve Chair Jerome Powell should step down from the central bank's board when his term as chair is up in May 2026.
"Traditionally, the Fed chair also steps down as a governor," Bessent said in an interview with Bloomberg Television Tuesday. "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."
Powell's term as a Fed governor doesn't end until January 2028, leaving it possible for him to remain at the central bank - and to participate in monetary policymaking - even after his tenure as the chair comes up next May. Powell has repeatedly declined to answer questions on whether he might stay on as a governor. That reticence has complicated the decision-making for President Donald Trump and his aides as they look to revamp Fed leadership next year.
"There's a formal process that's already starting" with regard to identifying the nominee to become next Fed chair, Bessent also said. "There are a lot of good candidates inside and outside the Federal Reserve."
Asked whether Trump has asked Bessent himself to serve as Fed chair, the Treasury chief said, "I am part of the decision-making process." He noted that "it's President Trump's decision, and it will move at his speed."
Treasuries dropped after Bessent's remarks, with two-year yields hitting a session high of 3.92%. The Bloomberg Dollar Spot Index pared losses and was little changed as of 7:55 a.m. in New York.
Unless Powell makes clear he'll vacate his board position, Trump has one scheduled opening to fill next year, with Governor Adriana Kugler reaching the end of her term in January.
"Traditionally, the Fed chair also steps down as a governor," Bessent said in an interview with Bloomberg Television Tuesday. "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."
Powell's term as a Fed governor doesn't end until January 2028, leaving it possible for him to remain at the central bank - and to participate in monetary policymaking - even after his tenure as the chair comes up next May. Powell has repeatedly declined to answer questions on whether he might stay on as a governor. That reticence has complicated the decision-making for President Donald Trump and his aides as they look to revamp Fed leadership next year.
"There's a formal process that's already starting" with regard to identifying the nominee to become next Fed chair, Bessent also said. "There are a lot of good candidates inside and outside the Federal Reserve."
Asked whether Trump has asked Bessent himself to serve as Fed chair, the Treasury chief said, "I am part of the decision-making process." He noted that "it's President Trump's decision, and it will move at his speed."
Treasuries dropped after Bessent's remarks, with two-year yields hitting a session high of 3.92%. The Bloomberg Dollar Spot Index pared losses and was little changed as of 7:55 a.m. in New York.
Unless Powell makes clear he'll vacate his board position, Trump has one scheduled opening to fill next year, with Governor Adriana Kugler reaching the end of her term in January.
You may also like
'Pretty boring stuff': Donald Trump downplays 'fascination' surrounding Epstein files; blames 'bad people' for keeping it alive
Mithi River Desilting Scam: 'Virgo CEO Ketan Kadam Received ₹2.41 Crore In Personal Account From Supplier,' Says Sessions Court
Bradley John Murdoch dead: Murderer never told police where he hid his victim's body
Thane Crime: Kalyan GRP Arrests Wadala Man For Sexually Assaulting 2 Minor Boys; FIR Registered Under POCSO Act
Maharashtra News: Anti-Narcotics Cell Seizes ₹13.9 Lakh Worth Of Mephedrone, ₹17 Lakh Cash; 3 Arrested In Vasai Drug Trafficking Case
