U.S. Treasury Wants Next Federal Reserve Chair to “Review the Entire Organization”
Bessent is actively leading the search for Powell’s successor. The shortlist reportedly includes a veteran economic consultant.
Quick overview
- U.S. Treasury Secretary Scott Bessent has outlined the qualities needed for the next Federal Reserve chair amid criticism of Jerome Powell.
- The ideal candidate should have market confidence, the ability to analyze complex economic data, and a forward-thinking approach to monetary policy.
- Bessent is leading the search for Powell's successor, with a shortlist that includes a veteran economic consultant and a former regional Fed president.
- Despite pressure, Powell remains firm in his position, with his term expiring in May next year, while the President has appointed Stephen Miran to fill a recent vacancy.
The U.S. Treasury Secretary, Scott Bessent, has outlined the profile of the next Federal Reserve (Fed) chair as the Donald Trump administration intensifies its criticism of the current head, Jerome Powell.
Bessent emphasized that the candidate must be able to “review the entire organization,” noting that the Fed has expanded its remit beyond traditional monetary policy.
In an interview published Monday, Bessent said the next Fed chief should have three key qualities: “They must have the confidence of the markets and the ability to analyze complex economic data,” he told Japanese media.
The third trait, he said, reflects the administration’s forward-looking approach to monetary policy: “They should be very attuned to forward-thinking, as opposed to relying solely on historical data,” suggesting a paradigm shift in how the Fed could be managed.
A Search Underway
According to Reuters sources, Bessent is actively leading the search for Powell’s successor. The shortlist reportedly includes a veteran economic consultant and a former regional Fed president.
Still, the Treasury Secretary was careful to address the balance between presidential expectations and the Fed’s institutional autonomy. “While the president makes his views known, at the end of the day, the Fed is independent,” he said.
The selection process will be closely watched by global financial markets, given the Fed’s central role in maintaining international financial stability.
Latest Federal Reserve Decisions
Under intense pressure, Powell held firm. He kept interest rates unchanged at the July meeting and, above all, maintained control of the situation. But the decision was not unanimous — it passed with a 9–2 vote. The dissenters, Governors Chris Waller and Michelle Bowman, favored starting rate cuts. Another governor, Adriana Kugler, was absent. Two days later, she resigned, creating a vacancy that had been expected only at the end of January.
Powell is standing his ground. His term as Fed Chair is fixed, expiring in May next year, and he has said he will not leave early. Still, steering the ship is about to get harder. Wasting no time, the President has already named Kugler’s replacement: Stephen Miran, former head of the White House Council of Economic Advisers and a vocal advocate of tariffs and a weaker dollar.
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