President Donald Trump said Tuesday that Treasury Secretary Scott Bessent is officially off the shortlist to lead the Federal Reserve next year, even as speculation swirls over who will replace current Chair Jerome Powell when his term ends in May 2026.
“I love Scott, but he wants to stay where he is,” Trump told CNBC’s Squawk Box.“He actually said, ‘I want to work with you.’ It’s such an honor. I said, ‘That’s very nice. I appreciate that.’”
Bessent’s name had been floated for weeks, but the Treasury Secretary had not publicly taken himself out of the running — until now.
The Final Four: Hassett, Warsh, and Two Others
Trump confirmed he has four finalists in mind to succeed Powell:
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Kevin Hassett, current Director of the National Economic Council
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Kevin Warsh, former Fed governor (2006–2011)
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Two unnamed candidates
“Both Kevin Warsh and Kevin Hassett are very good candidates for the Fed,” Trump said.
Over the weekend, Hassett told NBC’s Meet the Press that he has the “best job in the world” but did not rule out accepting a Fed nomination.
Trump Jokes About Replacing Powell with CNBC Hosts
The president, known for his off-the-cuff candor, even joked during the live interview that the Squawk Box hosts themselves might be more competent than current Fed officials.
“Everyone on your phone right now, in terms of at your beautiful studio, would be very qualified,” he quipped.“You guys are better than most of the people that do it for a living.”
Powell on Borrowed Time?
Trump has consistently blasted Powell over his refusal to aggressively cut interest rates, calling the chairman “highly political” and “too late” in responding to economic signals.
Although Trump has stopped short of saying he would fire Powell, critics and legal scholars have debated whether the president has the authority to do so.
Powell, for his part, has signaled he won’t resign despite sustained criticism from the White House.
Economic Backdrop: Inflation, Interest Rates, and a Weak Jobs Report
Trump’s frustrations with Powell stem largely from the Fed’s decision to maintain interest rates in the 4.25%–4.5% range, even as the administration seeks to refinance roughly $9 trillion in U.S. debt.
While some economists defend Powell, citing elevated inflation above the Fed’s 2% target, Trump believes the Fed’s inaction is hampering recovery.
The economic picture took another hit this week after a disappointing July jobs report showed just 73,000 new jobs, with May and June’s figures revised down by 258,000 combined.
In response, Trump dismissed Bureau of Labor Statistics Commissioner Erika McEntarfer, accusing her of manipulating employment data.
“It’s not what I want,” Trump told Squawk Box. “I wanted [rate cuts] a year ago. I wanted it a long time ago. Jay Powell is highly political. I call him ‘Too late.’”
