US Treasury Secretary Scott Bessent said on Wednesday that the administration is not in a hurry to identify a successor for Powell.
Speaking to Bloomberg TV, Bessent confirmed that the process is beginning but emphasised that any final decision would rest with President Trump.
“We are getting the process underway. Obviously, it’s going to be President Trump’s decision, and we’re not in a rush,” Bessent said.
In a separate interview aired Tuesday, Bessent said there was no current reason for Powell to step down.
When asked if Fed Governor Michelle Bowman was being considered as a potential replacement, Bessent declined to comment on specific names.
“I’m not going to name names, but there are candidates, as I said, on the board, several female regional bank presidents, and there are fantastic women outside the Fed,” he said.
Bessent also noted that he continues to hold regular meetings with Powell and that the Fed chair has not indicated any plans to vacate his board seat before 2028.
Trump rekindles criticism of Fed Chair
President Donald Trump resumed his sharp criticism of Federal Reserve Chair Jerome Powell on Tuesday but appeared to downplay the likelihood of removing him before his term ends.
Speaking to reporters during a White House interaction, Trump said Powell would be out “pretty soon anyway,” referencing the remaining duration of Powell’s term, which ends in May 2026.
“I think he’s done a bad job, but he’s going to be out pretty soon anyway,” Trump said. “Eight months, he’ll be out.”
Trump’s comments come amid ongoing speculation over Powell’s job security and renewed legal debate over the extent of a president’s authority to remove a sitting Fed chair.
Trump’s criticism of Powell dates back to his first term, when he appointed him to lead the central bank.
He has consistently accused Powell of being slow to respond to economic signals, particularly on interest rate decisions.
“He’s too late all the time. He should have lowered interest rates many times,” Trump said.
He added that Powell’s policies were preventing Americans from affording homes.
“People aren’t able to buy a house because this guy is a numbskull. He keeps the rates too high, and [is] probably doing it for political reasons.”
The Fed cut its benchmark interest rate by a full percentage point in late 2024, around the time of the presidential election.
Still, Trump has maintained that the central bank has been overly cautious and politically motivated in its approach.
At one point, Trump reportedly raised the idea of firing Powell during a meeting with Republican lawmakers last week. However, he later called the prospect “highly unlikely.”
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