WASHINGTON - Treasury Secretary Scott Bessent said on Wednesday that he had a substantial conversation with President Donald Trump about the selection of a successor to Federal Reserve Chair Jerome Powell, and that the field remains at four contenders.
Speaking to CNBC, Bessent said he accompanied the president to Iowa for a rally and then spent more than two hours talking with him on the return flight to Washington about the Fed chair nomination. He declined to identify the candidates or to disclose whether he had urged a particular choice.
Asked directly if he had made a recommendation, Bessent replied, "I don’t make recommendations. I give the president options and outcomes. It’s going to be the president’s decision." He added that he did not know when the president would make a public announcement, saying, "Only the president knows." The White House provided no immediate comment on the timing of any decision.
Bessent made his remarks before the Federal Reserve convened to set interest rates. He said the president had neither narrowed nor expanded the field of four candidates, and he did not name the individuals under consideration.
In recent public comments, President Trump has said he expects to name his pick soon and last week said he was "down to one in my mind," while also expressing a preference to keep his top economic adviser Kevin Hassett in his current position. Among names that have been mentioned elsewhere, BlackRock's chief bond investment manager Rick Rieder has been described by Trump as having delivered a "very impressive" interview and is cited by the prediction market Kalshi as the current frontrunner. Other potential candidates who have been identified by Trump and senior aides in recent weeks include Federal Reserve Governor Christopher Waller and former Fed Governor Kevin Warsh.
Bessent also addressed the situation of Stephen Miran, who is on leave from his role as chairman of the White House Council of Economic Advisers to serve on the Fed's Board of Governors. Miran's board term was scheduled to end on January 31, and Bessent said Miran could remain in his current CEA role for the time being. Miran previously indicated he would likely stay on the Fed board until the Senate had confirmed whoever the president nominates as the next Fed chair. Miran joined the Fed last September to complete the remaining months of a 14-year term after the unexpected resignation of Fed Governor Adriana Kugler, who had been nominated by former President Joe Biden.
On monetary policy, Bessent urged the Federal Reserve to retain flexibility. He said there were many board members who had "a false narrative" on inflation and expressed hope that the Fed would "have an open mind and see what's coming over the next couple months." He added that strong U.S. economic growth and rising wages do not automatically translate into higher inflation, pointing to substantial declines in rents as a countervailing factor.
The administration's deliberations over the Fed chair are unfolding as the central bank meets to consider the path of interest rates. Bessent framed his role as presenting options and likely outcomes to the president rather than directing the choice, leaving the ultimate decision and its timing in the hands of the White House.
Context and implications
- The White House has offered no timeline for when a nomination will be made.
- Bessent reiterated that the decision rests with the president and declined to disclose the identities of the four candidates.
- Bessent's comments on inflation signal a push for the Fed to consider a range of incoming data before adjusting policy.