Trump’s Fed Chair Candidates: Bessent Bows Out as Four Contenders Emerge for the Role
Trump Narrows Federal Reserve Chair Candidates, Treasury Secretary Bessent Steps Aside
Trump reduced the list of Fed Chair candidates when he announced on CNBC’s Squawk Box that Scott Bessent will not try to lead the central bank. The President said Bessent will stay at the Treasury Department. This choice cuts the list to four candidates.
Bessent Opts to Stay as Treasury Secretary
Trump spoke with high respect for Bessent. Still, Bessent chose to remain in his current role. Last night, Trump asked him, “Is this something you want?” Bessent replied, “Nope, I want to stay where I am. I want to work with you.” Trump called this response an honor. Bessent was once seen as a top choice for the influential role, but he is out of the running now.
The Remaining Contenders
Trump did not name all four candidates but mentioned a few well-known figures:
- Kevin Warsh – former Fed Governor known for favoring lower interest rates.
- Kevin Hassett – the director of the National Economic Council who often supports rate cuts.
- Christopher Waller – a current Fed Governor who is said to be competing.
Trump spoke well of both Kevins, calling them “very good” candidates. He also referred to other strong prospects. In addition, Fed Governor Adriana Kugler resigned effective this Friday. Trump called Kugler’s exit a “pleasant surprise” because it frees up a seat for someone from Trump’s circle.
The Fed Chair Position and Interest Rate Policies
The current Chair, Jerome Powell, will finish his term in May 2026. Powell was nominated by Trump in 2017 and was confirmed by the Senate. Trump often criticizes Powell for the way he handles interest rate policies. In a remark, Trump said, “Sir, I’ll keep interest rates so low. I’m a low interest rate person.”
Right now, interest rates sit in the 4.25%-4.5% range. Markets expect the next rate drop to come in September. This fits with Trump’s long-held view in favor of looser monetary rules.
Speculation on a “Shadow Chair”
Trump did not rule out the idea of naming a second, backup chair for the Fed. Though he did not say he would make that move, he noted that it remains “a possibility.”
The administration now readies itself to fill key positions at the Federal Reserve. This move may align the central bank closer to the White House’s economic plans in an election year.
For real-time updates and live coverage, CNBC viewers can tune into the Squawk Box livestream and check detailed reports on the changing Fed leadership.
Source: CNBC, August 5, 2025
