Bessent says Trump weighing four candidates to succeed Powell

U.S. Treasury Secretary Scott Bessent said on Wednesday that he has held extensive discussions with President Donald Trump regarding the nomination of a successor to Federal Reserve Chair Jerome Powell, adding that four strong candidates remain under consideration, according to Reuters.

Bessent said he recently travelled with Trump to Iowa for a campaign rally and held a lengthy conversation with the President during the return flight to Washington, where the two discussed the Federal Reserve chair nomination in detail. He indicated that he does not make formal recommendations but instead presents options and possible outcomes to the president, with the final decision resting solely with Trump.

He declined to provide further details on the candidates and said there was no clarity on when Trump would announce his choice. The White House did not immediately comment on the timing of a potential announcement, Reuters reported.

Bessent said the pool of four candidates has neither been narrowed nor expanded ahead of Wednesday’s Federal Reserve policy meeting, which was scheduled to set interest rates.

Trump has said repeatedly that he plans to announce his pick soon and has indicated in recent days that he has effectively narrowed the choice in his own mind. However, he has also suggested a preference for keeping White House economic adviser Kevin Hassett in his current role.

Prediction market data cited by Reuters shows BlackRock’s chief bond investment manager, Rick Rieder, emerging as the leading favourite to succeed Powell when his term ends in May. Other candidates named by Trump and senior administration officials in recent weeks include Federal Reserve Governor Christopher Waller and former Fed Governor Kevin Warsh.
Bessent reiterated that Trump is choosing among four candidates and characterised the field as strong.He also said Stephen Miran, who is currently on leave from his position as chairman of the White House Council of Economic Advisers to serve on the Federal Reserve Board of Governors, could remain in his role for the time being. Miran’s term had been scheduled to end on January 31.

Miran has previously indicated that he is likely to remain on the Fed board until the Senate confirms Trump’s nominee for the next Fed chair. He joined the Federal Reserve in September to complete the remainder of a 14-year term following the resignation of Fed Governor Adriana Kugler, who had been nominated by former President Joe Biden.

Separately, Bessent urged Federal Reserve officials to remain flexible in their approach to interest rate policy. He said some policymakers may be relying on outdated assumptions about inflation and argued that strong economic growth and rising wages do not necessarily imply renewed inflationary pressures, particularly given declines in rental costs, according to Reuters.

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