Treasury Secretary takes up duties as the Federal Reserve's leading figure

Trump Calms Down, Powell Slams Back; Bessent Eyes Fed Top Job

Treasury Secretary takes up duties as the Federal Reserve's leading figure

Take a seat, Jerome. The heat from Trump's verbal barrage against the Fed chair might be easing, but it's Scott Bessent who's stepping into the hot seat as a potential successor.

According to the grape vine, US Treasury Secretary and former hedge fund manager, Scott Bessent, is a leading contender to replace Jerome Powell as the Fed boss. Word on the street is that insiders from Trump's team - and beyond - are pushing for Bessent's name.

Trump hinted about naming a new Fed head real soon, with Powell's term ending in May 2026. Former Fed Governor Kevin Warsh is also in the running. Rumors suggest Trump had a tete-a-tete with Warsh last year about the US Treasury Secretary gig.

No interviews just yet, insiders say. When asked for comment, Bessent kept it cool, saying he's got the best gig in town - it's the President who picks the right person for the economy and the American people.

Fresh Attacks on Powell

On Friday, Trump was at it again, pressuring the Fed to lower interest rates. He kept up the slammed on Powell, demanding a full percentage point chop. "Europe had ten rate drops, we had none," Trump posted on his social media platform, Truth Social. That, he said, would be like a rocket.

The Fed usually cuts rates in increments of 0.25 percent. Since December, they've been on hold. The ECB, meanwhile, has dropped rates eight times since July 2024.

In the past few months, Trump even talked about firing Powell. He later walked that back.

Bessent was part of the latest China negotiations, where the US and the People's Republic agreed on a framework deal. That's the latest turn in the trade war that had been heating up.

Sources: ntv.de, chl/DJ

• Fed
• Jerome Powell
• Scott Bessent

Enrichment Data:

Background- Education: Bessent graduated from Yale College in 1984[4].- Career: He started in finance at Soros Fund Management in 1991, leading their London office. During this tenure, he made a killing from the British Pound sterling crisis on Black Wednesday in 1992 and a notable profit by betting against the Japanese yen in 2013[4]. After leaving Soros Fund Management in 2015, he founded Key Square Group, a macro investment firm[4].- Government Role: Bessent was appointed as U.S. Treasury Secretary by President Donald Trump in November 2024 and confirmed by the Senate on January 27, 2025[3][4]. He's the 79th U.S. Secretary of the Treasury and serves as a key economic advisor to the President[3].

Potential as Fed Chair- Experience: Although Bessent lacks direct Federal Reserve experience, his extensive background in international finance and current role as Treasury Secretary make him a notable, if unconventional, candidate for the position[1][2].- Political Connection: Bessent's close ties with President Trump and his involvement in the Trump 2024 presidential campaign as a donor, fundraiser, and economic advisor strengthen his potential bid for the Fed Chair position[4].

Implications of His Appointment- Central Bank Independence: Bessent's potential appointment as Fed Chair has raised eyebrows about possible impacts on the Federal Reserve's independence[1][2].- Economic Policy: As Treasury Secretary, Bessent shapes US economic strategies. If he takes the Fed Chair reigns, monetary policy might lean closer to the administration's economic agenda[3].

1. Despite the tensions between President Trump and the Federal Reserve Chair, Jerome Powell, reports suggest that the US Treasury Secretary and potential successor, Scott Bessent, has an extensive background in international finance, making him a notable, if unconventional, candidate for the position.
2. If appointed as the Fed Chair, Scott Bessent's close ties with President Trump and his role in shaping US economic strategies as Treasury Secretary might lead to monetary policies leaning closer to the administration's economic agenda, raising questions about the Federal Reserve's independence.

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