Trump's Search for Powell's Successor: Bessent Weighs In

Treasury Secretary Scott Bessent discussed with President Trump the selection of a successor for Federal Reserve Chair Jerome Powell. With four prime candidates in contention, including Rick Rieder, Trump holds the decision. Bessent contributes by offering options, while urging the Fed to have an open approach to interest rates.

The search for a successor to Federal Reserve Chair Jerome Powell was a key topic of discussion between Treasury Secretary Scott Bessent and President Donald Trump during a recent trip to Iowa. Bessent refrained from making recommendations but presented the president with possible outcomes for his choice.

Bessent did not divulge any preferred candidate names as of yet but indicated that Trump has four strong candidates under consideration. Among the potential successors are BlackRock's Rick Rieder, Fed Governor Christopher Waller, and former Fed Governor Kevin Warsh, with Rieder currently seen as the frontrunner.

Despite the ongoing deliberation, Bessent urged the Federal Reserve to remain open-minded about interest rates amid robust U.S. economic performance. He stressed that economic growth and wage hikes don't necessarily herald inflation, particularly with declining rent values. The final decision falls to Trump, with an announcement anticipated soon.