US President Donald Trump has ruled out Treasury Secretary Scott Bessent as a potential candidate for Federal Reserve chair, saying Bessent “wants to stay on” in his current role. In an interview with CNBC, Trump confirmed that four names are currently under consideration to replace the current Fed Chair Jerome Powell, including Kevin Warsh and Kevin Hassett.”Both Kevin Warsh and Kevin Hassett are very good candidates for the Fed,” Trump said, adding, “and I have two other people” in the mix. The US president also said he would soon announce a replacement for Fed Governor Adriana Kugler, who announced her early resignation last week, effective August 8.
With Kugler’s exit and Powell’s potential replacement, Trump could have appointed four of the seven sitting governors at the US central bank. All seven governors hold permanent voting rights on monetary policy, giving the administration a significant voice in shaping the Fed’s future direction.
Trump, a frequent critic of Powell, continued his attacks during the interview, and dismissed official labour market data, stating, “Do not believe the BLS data.” His comments come after he fired Bureau of Labour Statistics Chief Erika McEntarfer, whose recent jobs report showed weak employment growth. Trump had said he would name a new statistician for the BLS in the coming days.
Powell’s term as Fed chair runs until May 2026, and the Supreme Court ruled in May that a sitting president cannot remove the Fed chair over policy disagreements. However, the Trump administration is reportedly exploring alternative legal routes, including citing issues such as cost overruns in the Fed’s ongoing $2.5-billion headquarters renovation, as potential grounds for removal.Also Read: US President Trump threatens ‘substantial’ tariff hike on Indian goods in 24 hours
With Kugler’s exit and Powell’s potential replacement, Trump could have appointed four of the seven sitting governors at the US central bank. All seven governors hold permanent voting rights on monetary policy, giving the administration a significant voice in shaping the Fed’s future direction.
Trump, a frequent critic of Powell, continued his attacks during the interview, and dismissed official labour market data, stating, “Do not believe the BLS data.” His comments come after he fired Bureau of Labour Statistics Chief Erika McEntarfer, whose recent jobs report showed weak employment growth. Trump had said he would name a new statistician for the BLS in the coming days.
Powell’s term as Fed chair runs until May 2026, and the Supreme Court ruled in May that a sitting president cannot remove the Fed chair over policy disagreements. However, the Trump administration is reportedly exploring alternative legal routes, including citing issues such as cost overruns in the Fed’s ongoing $2.5-billion headquarters renovation, as potential grounds for removal.Also Read: US President Trump threatens ‘substantial’ tariff hike on Indian goods in 24 hours
The Federal Reserve has kept its benchmark interest rate steady this year at an average of 4.33%, citing the need to assess inflationary pressures, including those from Trump’s previous tariffs.
Also Read: Trump claims India offered zero tariffs but he refused because of Russian oil purchases
The Fed’s preferred inflation gauge currently stands at 2.6%, slightly above its 2% target. President Trump has been pushing for a three percentage point cut in interest rates, arguing that lower rates would boost economic growth and reduce borrowing costs for both consumers and the government.
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(Edited by : Shoma bhattacharjee)
First Published: Aug 5, 2025 7:01 PM IS
