As Federal Reserve Chairman Jerome Powell’s term is set to conclude in May 2026, personnel changes in the White House have garnered market attention.
U.S. President Donald Trump has long held differing views from Powell regarding interest rate policies, leading to speculation that his favored successor is current Treasury Secretary Scott Bessent. In response, the White House quickly denied these rumors.
Bessent Viewed as a Potential Candidate for Fed Chairman, White House Quickly Clarifies
This morning, Bloomberg reported that, according to multiple sources, U.S. Treasury Secretary Bessent is seen as one of the potential candidates for the Federal Reserve chairmanship, currently held by Powell, whose term is expected to end in May 2026. Reports indicate that Trump places significant importance on Bessent and believes he has the capability to take over the Federal Reserve. Alongside Bessent, former Fed governor Kevin Warsh is also being considered.
(Is the U.S. Debt Ceiling Approaching Again? JPMorgan Warns of Potential U.S. Debt Collapse, Bessent: The U.S. Will Never Default)
The White House swiftly refuted these claims, calling them false reports, and stated that the formal hiring process has not yet commenced, attempting to quell external speculation. However, Trump had just indicated last week that he would “soon” announce his choice for Powell’s successor, undoubtedly making it a focal point globally.
Trump and Powell’s Policy Discrepancies are Not New
The tense relationship between Trump and Powell is not news; Trump has repeatedly criticized Powell’s policies during his tenure, claiming they are slow to respond and hinder economic recovery, and has threatened to consider replacing him.
(Is Trump Considering Replacing Fed Chairman Powell? White House Advisor: Still Under Review)
Bessent is considered a highly effective policy executor, leading a series of global trade strategies, tax initiatives, and regulatory reforms under the Trump administration. Should he indeed assume the role of Fed chairman, it is expected to result in a significant shift in the institution’s decision-making direction, drawing close attention from market investors.
From London to Washington: Bessent Briefly Attends U.S.-China Trade Negotiations and Returns Early
Amid swirling rumors regarding the Fed succession, Bessent is currently engaged in trade discussions with Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, alongside Vice Premier He Lifeng and Minister of Commerce Wang Wentao. The two sides are in the second day of talks at Lancaster House in London, focusing on contentious issues such as rare earth export restrictions.
(U.S.-China Trade Resumption Consensus: New Framework Agreement Reached in London Talks)
Though the meetings have yet to conclude, Bessent indicated that he left London early with Greer in anticipation of the congressional hearing on June 11, while Lutnick will continue discussions with the Chinese side as circumstances allow.
Describing the two days of talks as “productive,” Bessent emphasized that the remaining U.S. representatives will continue negotiations with the Chinese side based on developments. The U.S. aims to complete this round of negotiations before Tuesday evening local time in the UK.
Simultaneously, the Trump administration is accelerating bilateral trade negotiations with other countries, including Mexico, India, and Japan. Choosing to grant some concessions on technology controls to China at this time will undoubtedly affect broader global supply chains and geopolitical dynamics.
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