President Donald Trump on Tuesday said Treasury Secretary Scott Bessent won’t be in the running to become the next chair of the Federal Reserve.
“He wants to stay where he is. I’ll take him off the — because I asked him just last night, ‘Is this something you want?’ ‘Nope. I want to stay where I am.’ He actually said, ‘I want to work with you,’” Trump said during a CNBC interview Tuesday morning. “He likes being Treasury secretary. He’s doing a really good job. We made the greatest trade deals in the history of our country. We had to because we were being ripped off by the world.”
Bessent previously downplayed rumors that he could be selected to replace current Fed Chair Jerome Powell next spring, telling FOX Business’ Maria Bartiromo last month that he remains satisfied with his current job in the administration.
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However, he confirmed the administration has begun a “formal process” to select Powell’s successor, with the Fed chair’s term set to end in May 2026, amid rising tensions between Trump and Powell.
When asked about the timeline for announcing a new Fed chair, Bessent said it is “President Donald Trump‘s decision, and it will move at his speed.”
Powell has asserted he “will never, ever, ever leave this job voluntarily.” However, tensions between Powell, originally appointed by Trump in 2017, and the president have continued to rise, with the central bank’s interest rate decisions proving a particular point of friction. Trump wants interest rates cut, but the Fed hasn’t done so since 2024.
Last month, Trump told reporters at the White House that Powell is doing a “lousy job.”
FEDERAL RESERVE HOLDS KEY INTEREST RATE STEADY FOR FIFTH STRAIGHT MEETING DESPITE TRUMP’S PRESSURE
After the central bank left interest rates unchanged last week, Trump slammed Powell, calling him “TOO STUPID, & TOO POLITICAL, to have the job of Fed Chair” on Truth Social.
This marked the fifth consecutive meeting the Fed held its benchmark interest rate steady, citing uncertainty over the impact of tariffs on inflation and consumer prices as well as conditions in the labor market.
Chair Powell said at the post-announcement press conference that while inflation remains above the Fed’s 2% longer-run goal, the labor market is at roughly full employment, leaving the central bank in a good position to cut rates if economic conditions deteriorate.
He also noted that tariffs appear to be increasing consumer prices and pushing inflation data higher, though it’s unclear what the long-term impact on the economy will be.
Prior to the meeting, Trump touted the economy’s 3% growth in the second quarter, writing on Truth Social that it was “WAY BETTER THAN EXPECTED!” and added that, “‘Too Late’ MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!”
FOX Business’ Eric Revell contributed to this report.
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