Trump weighs Scott Bessent for Fed chair

During a visit to Japan, Trump praised Bessent’s ability to steady markets, while also hinting he might prefer to remain at the Treasury. That mixed signal leaves Bessent both a contender and the chief coordinator of the search. 

• Fed Governors Christopher Waller and Michelle Bowman;
• former Fed governor Kevin Warsh;
• former White House economic adviser Kevin Hassett;
• Rick Rieder, who for many years ran fixed income at BlackRock.

According to people familiar with the process, Scott Bessent plans to present updated policy recommendations to the president right after Thanksgiving. Trump himself has indicated he could name a candidate by 31 December.

Jerome Powell’s term as chair expires in May 2026, creating a natural deadline for the selection. Well‑placed sources also caution that a bruising confirmation battle in the Senate is possible.

All this is playing out against a delicate macroeconomic backdrop. Markets are pricing in another rate cut at the Fed’s upcoming meeting, and investors are parsing every signal about the central bank’s future leadership for hints of the policy path ahead. Trump has repeatedly criticised Powell over the pace and depth of easing, fuelling expectations that a new chair could be more sceptical of some recent Fed interventions and focus on rolling back what White House allies call “distortionary” measures.

Bessent, formerly chief investment officer at Soros Fund Management and founder of the macro fund Key Square, is widely seen as a markets‑savvy pragmatist who shares Trump’s priorities: faster growth and a stable dollar. Elevating him would consolidate presidential influence over fiscal and monetary policy: supporters argue this could improve coordination, while critics warn about blurring institutional lines.

For now, only the timetable is clear: a post‑Thanksgiving shortlist and a likely year‑end decision. Until then, the president’s hints keep Washington guessing and financial markets alert.