Trump-Backed Push For Rate Cuts Intensifies As Scott Bessent Leads Search For Fed Chair To Succeed Jerome Powell: Report
As President Donald Trump continues to push for lower interest rates, the search for a successor to Federal Reserve Chair Jerome Powell has expanded, with U.S. Treasury Secretary Scott Bessent at the helm.
Bessent Leads Search For New Fed Chair
Bessent is leading the search for a new Federal Reserve chair, following Trump’s repeated calls for the central bank to lower interest rates.
The list of potential candidates has grown to include prominent figures like St. Louis Fed President James Bullard and Marc Sumerlin, a former economic adviser to President George W. Bush, Reuters reported, citing a source.
It was also confirmed by the publications that the expanded list now includes around 10 candidates.
Trump has long criticized Powell's handling of interest rates, calling for cuts throughout 2025 and tensions between the two have escalated.
Powell's term is set to expire in May 2025 and while Trump has pressured Powell to reduce rates, critics have argued that Powell should be allowed to serve out his term without political interference.
See Also: Unemployment Claims Rise–And That's A Problem For The Fed
Who Are Candidates Under Consideration For Fed Chair
In addition to Bullard and Sumerlin, the expanded list includes National Economic Council Director Kevin Hassett, former Fed governor Kevin Warsh and current Fed governor Christopher Waller.
These candidates are seen as aligning with Trump's agenda of lower rates.
Bullard, who left the St. Louis Fed in 2024 to become dean of Purdue University's business school, previously indicated that the Fed could likely cut rates by September 2025.
Waller, Hassett and Warsh have also expressed support for rate cuts, making them favorable candidates in Trump's eyes.
Trump's Influence On Fed Policy
Trump's influence over the Federal Reserve has become a focal point of the search for Powell's successor. His criticism of Powell for not lowering rates sooner has led to growing calls for change.
Despite these tensions, Trump previously stated that he does not plan to remove Powell from his position, acknowledging that such a move would be significant.
Meanwhile, two days afterPowell declined to commit to a September rate cut, a weak July jobs report—with the largest two-month downward revisions since 2020—had economists and markets aligning with Trump's call for lower interest rates.
The U.S. added only 73,000 jobs in July, missing the 110,000 forecast, while May and June payrolls were revised down by a combined 258,000—the biggest two-month downgrade since the 2020 COVID-19 shock.
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Posted-In: Federal Reserve
