Treasury Secretary Bessent Takes Charge in Search for New Fed Chair Amid Reform Agenda
Treasury Secretary Scott Bessent Meets Fed Officials as Fed Chair Search Heats Up
Washington, D.C., September 11, 2025 – The Fed prepares for a change in leadership next year. Treasury Secretary Scott Bessent takes a central role in the hunt for Fed Chair Jerome Powell’s successor. This week, Bessent met with former Fed officials. He met Lawrence Lindsey, Kevin Warsh, and James Bullard. Sources close to the matter told CNBC they had seen this process move forward.
High-Profile Candidate Discussions
The meetings start a key phase in President Donald Trump’s search for a new head of the central bank. Lindsey and Warsh once served as Fed governors. Bullard led the St. Louis Fed. Each brings a long resume in money policy. A Treasury insider said Bessent will wait until the current blackout period ends. This pause comes before he talks with Fed officials who now work at the central bank. The waiting helps him follow the rules inside the Fed.
Bessent’s candidate check fits into a wider review at the Treasury. The list from President Trump has names like Warsh, Kevin Hassett from the National Economic Council, and current Fed Governor Christopher Waller. His team now studies about 11 economists. The list covers both past and present bankers and market experts. This search covers faces known to many and new planners as well.
Pushing for Federal Reserve Reform
Bessent also pushes for changes at the Fed. One step in his plan asks the Fed to cut its large bond holding. The portfolio now holds nearly $6 trillion in U.S. Treasurys and mortgage-backed securities. The goal is to shrink this balance slowly. The change must happen so the markets stay calm, and the wider economy stays steady.
Bessent wants the Fed to step back from a wider role in the economy. A source near Treasury said he asks the bank to stick to its core jobs. These jobs are keeping prices steady and making sure people can work. He warns against activities that stray from these goals. In a Wall Street Journal article last week, Bessent wrote that the Fed’s tools have grown “too complex to handle.” He noted the bank often acts outside of the narrow limits set by law. His words point to a clear need for change in how the Fed works.
Fed Under White House Scrutiny
The White House keeps a close watch on the Fed. President Trump and others have asked the Fed to cut interest rates. The Fed has not lowered rates since December 2024, even though many expect a 25-point basis drop at next week’s meeting.
The change in leadership comes soon. Jerome Powell’s term as chair ends in May 2026. Powell may keep his role as governor for up to two more years. A new chair is almost a sure bet. At the same time, the Senate votes on Stephen Miran for a spot on the Board of Governors. Other moves continue at the Fed. Trump has tried to remove Governor Lisa Cook amid claims of mortgage fraud, but courts have so far blocked the move.
Looking Ahead
Secretary Bessent now leads the check of candidates and calls for reform. In the next few months, the Fed may see big changes in who leads and how it works. The search for the Fed Chair brings together known names and fresh views. This change happens amid many shifts in both politics and finance.
For more updates on the Federal Reserve’s leadership and economic policy, stay tuned to CNBC.
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