Former President Donald Trump has confirmed he will not nominate current Treasury Secretary Scott Bessent as the next Federal Reserve Chair, narrowing the field of candidates to replace Jerome Powell when his term ends in May 2026.
Speaking to CNBC on Tuesday, Trump said he had approached Bessent about the potential move, but the Treasury Secretary declined. “I love Scott, but he wants to stay where he is. He does not want it,” Trump said. “He likes being Treasury secretary. He’s doing a really good job.”
Trump indicated he is now considering four candidates for the top post at the central bank, including National Economic Council Director Kevin Hassett and former Fed governor Kevin Warsh. He did not name the other two individuals, although Christopher Waller—appointed by Trump during his previous term—remains a possible contender.
The succession process has gained urgency following the resignation of Fed Governor Adriana Kugler last week, five months ahead of her term’s scheduled end. Trump described her exit as a “pleasant surprise,” adding that he may appoint a temporary replacement who could also serve as Powell’s eventual successor. “A lot of people say that, when you do that, why don’t you just pick the person who’s going to head up the Fed? That’s a possibility, too,” he noted.
Trump has been openly critical of Jerome Powell, calling him a “stubborn mule” over the Fed’s decision to keep interest rates steady this year. Despite the criticism, a weaker-than-expected July jobs report has raised the likelihood of a rate cut in the near future—potentially as early as next month.
Reflecting on his past appointments, Trump expressed caution: “Sometimes they’re all very good until you put them in there. I don’t want to regret it again.”
Observers have speculated that Trump may attempt to install a “shadow chair” by placing his preferred candidate in Kugler’s former seat ahead of Powell’s term expiration. However, some experts caution that such a move could disrupt the collaborative nature of monetary policymaking.
Vincent Reinhart, chief economist at BNY Investments and a former senior Fed official, warned: “From the outside, it isn’t always appreciated how much monetary policy is a group effort. They may find it harder to turn the boat, in which case there could be disappointment from the White House.”
As the 2026 transition approaches, Trump’s decision will likely shape the Federal Reserve’s direction in the coming years, especially amid heightened political and economic scrutiny.