U.S. Treasury Secretary Basent to Succeed Powell as Fed **###**? White House Denies: False News
As Fed Chairman Jerome Powell’s term is set to conclude in May 2026, personnel changes at the White House have garnered market attention.
President Trump has long been at odds with Powell over interest rate policies, leading to speculation that his preferred successor is current Treasury Secretary Scott Bessent. In response, the White House has swiftly denied these rumors.
Bessent Viewed as Potential Fed Candidate, White House Quickly Clarifies
Bloomberg reported this morning that according to several informed sources, Treasury Secretary Bessent is considered one of the potential candidates to lead the Federal Reserve. This position is currently held by Powell, whose term is expected to end in May 2026. Reports indicate that Trump holds Bessent in high regard and believes he has the capability to take the helm of the Fed. In addition to Bessent, former Fed Governor Kevin Warsh is also under consideration.
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The White House has quickly moved to refute these claims, stating that they are false reports and that official hiring procedures have not yet commenced, in an attempt to quell public speculation. However, Trump just stated last week that he would “soon” announce his choice for Powell’s successor, undoubtedly making it a global focal point.
Trump and Powell’s Policy Disagreements are Not New
The tense relationship between Trump and Powell is not news; Trump has criticized Powell’s policy response as slow, stifling economic recovery, and has threatened to consider replacing him.
(Is Trump considering removing Fed Chairman Powell? White House advisor: Still under review)
Bessent is regarded as a highly effective policymaker, leading a series of global trade strategies, tax initiatives, and regulatory reforms for the Trump administration. Should he indeed take over the Fed, it is expected to lead to a significant shift in the institution’s decision-making direction, drawing close attention from market investors.
From London to Washington: Bessent Briefly Attended U.S.-China Trade Talks, Returned Early to the U.S.
Amid the swirling rumors of a Fed succession, Bessent is currently engaged in trade negotiations with Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer, alongside Vice Premier He Lifeng and Minister of Commerce Wang Wentao from China. The two sides commenced their second day of talks at Lancaster House in London, focusing on contentious issues such as rare earth export restrictions.
(U.S.-China trade talks reboot consensus: New framework agreement reached in London)
Although the meetings are not yet concluded, Bessent has stated that due to a Congressional hearing scheduled for June 11, he and Greer have departed London early to return to the U.S., while Lutnick will continue discussions with the Chinese side as needed.
Upon leaving the venue, Bessent described the past two days of discussions as “productive” and emphasized that the remaining U.S. representatives will continue to negotiate with their Chinese counterparts based on developments. The U.S. goal is to complete this round of negotiations before Tuesday evening local time in the UK.
Simultaneously, the Trump administration is accelerating bilateral trade negotiations with other countries, including Mexico, India, and Japan. Choosing to make some concessions on technology controls towards China at this juncture will undoubtedly impact broader global supply chains and geopolitical dynamics.
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