Trump Confirms Scott Bessent Won’t Be Next Fed Chair, Reveals Top Picks

President Trump is signaling major changes ahead for the Federal Reserve and U.S. trade policy. In a recent interview with CNBC, he ruled out Treasury Secretary Scott Bessent as a potential Fed chair.

However, a decision is coming soon. Here’s what you need to know.

Fed Governor Kugler to Exit Early

Fed Governor Adriana Kugler is stepping down this Friday, well ahead of her term’s original end in January 2026. Kugler, who joined the Fed in September 2023, plans to return to teaching at Georgetown University this fall.

Her early departure gives Trump the chance to appoint a short-term replacement and potentially shape the path for Jerome Powell’s successor.

Trump says that there are numerous people qualified to replace Kugler. “A lot of people say, when you do that, why don’t you just pick the person who is going to head up the Fed? That’s a possibility too,” Trump said.

Trump hinted that the person chosen could also be in line to lead the Fed once Powell’s term ends.  However, Treasury Secretary Scott Bessent is not one of them, as he prefers to stay in his current role. “Well I love Scott, but he wants to stay where he is,” said Trump on CNBC. 

This came as a surprise to many, who imagined Bessent would be one of the top runners for the position. 

Who Could Be the Next Fed Chair?

Trump confirmed he is considering four potential candidates. 

He named Kevin Hassett and Kevin Warsh as top contenders and called them “very good” options. Reports suggest Fed Governor Christopher Waller is also in the mix, though his pace on rate cuts may not align with Trump’s.

The President has not held back his criticism of Jerome Powell for refusing to cut interest rates. He continues to push the Fed to cut interest rates by up to 3 percentage points. While Powell’s term ends in 2026, he can stay on the board until 2028, but the White House is hoping he leaves sooner.

So, Will Trump Fire Powell?

Trump has previously hinted at firing Powell, but he does not have the authority to remove the Fed Chair over policy disagreements alone.

Under Section 10 of the Federal Reserve Act, a president may remove a Fed Board member, including the Chair, only “for cause,” which generally means serious misconduct, neglect of duty, or inefficiency. Simply disagreeing with the Fed’s interest rate policy is not considered valid legal grounds for removal.

Also, after pushback from Wall Street leaders like JPMorgan CEO Jamie Dimon, Trump now says he will not remove Powell before his term ends.

Even if Bessent isn’t in the running, he is still playing a key role in the process. 

Bessent is helping lead the search for Powell’s replacement. Bessent is also handling key trade negotiations on the global stage. 

As he eyes a new Fed chair and tightens trade policy, Trump is signaling big changes ahead. Stay tuned to Coinpedia as we keep you updated.