After landing at Joint Base Andrews following a trip to Pittsburgh, Trump was asked if Bessent could be a possible replacement for Powell, whose term ends in May 2026.
“He’s an option, and he’s very good. Well, he’s not, because I like the job he’s doing, right?” Trump told reporters.
Trump has railed against Powell in recent months for not lowering US interest rates, and has repeatedly urged him to resign. The president cannot fire Powell over a policy dispute. Trump had originally appointed Powell, a fellow Republican, during his first time in office, and he was reappointed to a second term as Fed chief by Democratic President Joe Biden,
With the unemployment rate low and inflation above the Fed’s 2% target, US central bank officials have been reluctant to cut interest rates from the current 4.25% to 4.5% range until it is clear that Trump’s tariff policies won’t lead to a fresh surge in prices.
US data on Tuesday showed that consumer prices rose across an array of goods from coffee to audio equipment to home furnishings in what economists say is evidence that the increasing import duties are being passed through to consumers. Overall consumer prices rose 0.3% in June, a roughly 3.5% annual rate, after a 0.1% increase in May.
Other people under consideration to replace Powell include former Fed governor Kevin Warsh and Trump’s top economic adviser, Kevin Hassett.
Bessent, who has also played a key role in Trump’s trade negotiations with a host of countries, told Bloomberg Surveillance on Tuesday that a “formal process” was already starting to identify a potential successor to Powell.
“There are a lot of great candidates, and we’ll see how rapidly it progresses,” Bessent said.
He said it would be confusing for Powell to remain at the Fed after his term as chair ends in May 2026. Powell’s term as Fed governor extends until January 31, 2028.
Trump administration officials argue that a tax bill nearing passage in congress will boost private sector investment and strengthen the US economy, and insist that while tariff increases could result in a one-time bump in prices, they should not drive up inflation over the longer term.