U.S. Treasury Secretary Scott Bessent has stated that eleven candidates could replace Jerome Powell as the next Fed Chair. This includes some Fed officials, including Fed Governor Chris Waller, who is the frontrunner for the position.
Bessent Provides Update on Jerome Powell’s Potential Successor
During a FOX Business interview, Bessent said that there are eleven very strong candidates who could become the next Fed Chair. He noted that President Trump knows some of them, while he doesn’t know the others.
The Treasury Secretary revealed that he and some other White House officials will start interviewing these candidates after Labor Day on September 1. Bessent said that they will then present a shortlist of three to four candidates to Trump once they have completed the interviews.
He also mentioned that Trump has a sophisticated view of monetary policy and great respect for the Fed despite his constant criticism of Jerome Powell over his refusal to cut rates.
Bessent opined that the president believes the U.S. Central Bank has lost its way and is now seeking someone who is an expert in monetary policy, regulatory policy, and knows how to run an institution like the Fed.
Jerome Powell’s tenure as the Fed Chair ends in May next year, although Trump can announce the next Fed Chair from now, a move which has raised concerns of a ‘Shadow Fed.’ Meanwhile, as CoinGape earlier reported, Fed Governors Chris Waller, Michelle Bowman, and Phillip Jefferson are believed to be among the eleven candidates that Bessent alluded to.
Other candidates to replace Jerome Powell reportedly include Kevin Warsh, Kevin Hassett, Marc Summerlin, Dallas Fed President Lorie Logan, former St. Louis Fed President James Bullard, David Zervos, former Fed Governor Larry Lindsey, and Rick Rieder.
Chris Waller Leads The Race
Polymarket data shows that Chris Waller is currently the favorite to replace Jerome Powell and become the next Fed chair. There is currently a 27% chance that Trump names him as the next Fed chair this year.
Meanwhile, there is an 11.2% and 9.3% chance that the president will name Kevin Hassett and Kevin Warsh, respectively, as Jerome Powell’s successor this year. However, the market still favors the possibility that Trump won’t name the next Fed chair this year, as there is a 37% chance that this is what will happen.
As CoinGape reported, the Trump team favors Waller because of his willingness to work based on forecasts rather than current data. This is unlike Powell, who favors a wait-and-see approach before deciding on monetary policies.
It is worth noting that the Fed chair signaled the possibility of a September rate cut at the Jackson Hole conference. This came as he admitted that the downside risk to the labor market is increasing.
Boluwatife Adeyemi
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Source: https://coingape.com/bessent-says-11-strong-candidates-could-replace-fed-chair-jerome-powell/