Key Metrics
20.61
Heat Index-
Impact LevelMedium
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Scope LevelNational
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Last Update2025-08-05
Key Impacts
Positive Impacts (1)
Event Overview
This event reflects political dynamics in central banking appointments, highlighting tensions between executive preferences and institutional independence. It underscores the strategic balance leaders strike between personnel continuity and fresh perspectives in economic governance, particularly during transitions of key monetary policy roles. The decision emphasizes how individual career preferences intersect with high-stakes political decision-making, potentially shaping economic policy trajectories and market confidence in central bank leadership.
Collect Records
President Trump Rules Out Treasury Secretary Scott Bessent for Federal Reserve Chair
On June 24, 2025, President Donald Trump announced that Treasury Secretary Scott Bessent is no longer being considered as a replacement for Jerome Powell as Chair of the Federal Reserve. Speaking in a CNBC interview on Tuesday, Trump said, “I love Scott, but he wants to stay where he is. I'll take him off, because I asked him just last night, 'Is this something you want?' Nope, I want to stay where I am.” Trump stated that Bessent wishes to remain in his current position at the Treasury Department.
Trump also revealed that he is considering other candidates, including former Federal Reserve governor Kevin Warsh, top White House economist Kevin Hassett, and two unnamed individuals. The move follows Trump’s ongoing public criticism of current Fed Chair Powell, particularly regarding the central bank’s decision not to lower interest rates this year.
The announcement comes in the wake of Federal Reserve Governor Adriana Kugler's resignation last week, creating an opening for a new appointee. Trump told CNBC, “I'm going to be announcing that very shortly. It'll be for the four months, you know, for the short period of time,” referring to the appointment's length. Trump added that whoever he selects to replace Kugler could also be considered for the Fed Chair role when Powell’s term concludes the next year.
According to economist Kevin Hassett, Scott Bessent has been assisting Trump in the search for a new Fed Chair. Bessent has also played a significant role in trade negotiations, having traveled to Sweden the previous week to meet with Chinese officials regarding the extension of current tariff rates before an August 12 deadline.
The immediate result of Trump’s announcement is that Bessent will continue as Treasury Secretary, while the pool of potential candidates for the Federal Reserve Chair is narrowed to four other individuals. Further announcements regarding the new Fed appointee are expected soon.