Donald Trump said he was “thinking” of picking Scott Bessent to be the Federal Reserve’s next chair, even though the Treasury secretary has ruled himself out and is leading the search for Jay Powell’s replacement.
The US president made the comment about Bessent during a visit to Japan on Tuesday, praising the Treasury secretary for his ability to “soothe” financial markets during the first year of his second term.
“I’m thinking about him for the Fed,” Trump said of Bessent in remarks to business leaders in Tokyo, before saying that he would not take the job because “he likes being at Treasury”.
He then appeared to reverse course: “We’re not thinking about him really,” Trump said.
Bessent’s search to replace Powell at the end of his term in May 2026 has dragged on for weeks but has narrowed to a candidate list comprising two Fed governors, Christopher Waller and Michelle Bowman, Trump economic adviser Kevin Hassett, BlackRock strategist Rick Rieder and former Fed governor Kevin Warsh.
Trump is expected to finalise his choice between the Thanksgiving holiday in late November and Christmas in late December.
But Bessent’s name as a potential pick continues to be floated.
The Treasury secretary was doing a “terrific” job, Trump said, and was able to “clean it all up” when the president’s unorthodox policies roiled investors.
“How good is he on television? He soothes the markets – I don’t soothe the markets, I sometimes disturb the markets,” Trump said.
The president’s repeated calls for aggressive rate cuts and attacks on senior Fed officials have stoked concerns among investors that he is seeking to exert political control over the US central bank.
The Treasury secretary has been seen as a restraining force on Trump, although the US president has labelled Powell a “moron” and repeatedly threatened to fire him.
The Fed cut interest rates by a quarter-point in September amid signs that the US labour market is weakening. Officials are expected to back another quarter-point cut on Wednesday – a move that would take the federal funds target range to 3.75-4%.
Stephen Miran, a Trump ally and the newest member of the Fed’s board of governors, was the sole member last month to back a half-point cut, and says borrowing costs need to fall by another 125 basis points by year-end.
Ahead of the Fed’s cut in August, Bessent said borrowing costs needed to be 150 basis points lower.
