The Trump administration plans to begin working on a replacement for Federal Reserve Chair Jerome Powell this fall, Treasury Secretary Scott Bessent said.
In an interview with CNBC that aired on July 3, Bessent confirmed that President Donald Trump is looking at replacing the head of the central bank.
“We will start working on that in the fall,” Bessent said. “We’ve been busy. The president’s been doing peace deals, trade deals, tax deals, and we are landing the plane on all of those. So we’re going to have more bandwidth after Labor Day.”
Bessent’s direct commentary to a major business news outlet was an extension of the administration’s pressure campaign on the central bank amid ongoing disputes over interest rate policy and inflation.
A formal decision on Powell’s future is expected this fall. Bessent said Trump administration officials have plenty of “good candidates” in mind. Powell’s current term ends in early 2026.
While Bessent said he is “very happy” in his current position, he did not explicitly rule out taking the Fed role himself.
Speculation about Powell’s replacement has intensified in recent weeks as the Federal Open Market Committee (FOMC) holds steady on interest rates, keeping them in the 4.25 percent to 4.5 percent range. In the interview, Bessent said the Fed has waited too long to respond to changing conditions.
“Based on their previous models, they would have already cut,” Bessent told CNBC. “If they want to make a mistake here and not cut, then that’s fine. We are at very high real rates.”
Bessent, a former hedge fund manager, also criticized Powell and other Fed policymakers for failing to act in 2022. He said they are remaining too cautious as inflation moderates.
“As I’ve said before, medical studies have shown people who fall down tend to look at their feet,” Bessent said. “You look at your feet, you fall down more often. And I got a feeling they’re still looking at their feet from 2022.”
Trump, who appointed Powell during his first term, has openly clashed with the Fed chair and has repeatedly called for his resignation. The president cannot fire Powell over monetary policy disagreements.
On June 30, Trump posted on his Truth Social account that both Powell and the board of the Federal Open Market Committee should be “ashamed of themselves” for not lowering interest rates to between 0.25 and 1.75 percent.
“Jerome ‘Too Late’ Powell, and his entire Board, should be ashamed of themselves for allowing this to happen to the United States,” Trump said. “They have one of the easiest, yet most prestigious, jobs in America, and they have failed—And continue to do so.”
