Federal Reserve Chairman Jerome Powell speaks during a press conference after the Federal Open Market Committee meeting in Washington on November 7, 2024.
Kent Nishimura | Getty Images
Scott Bessent, the hedge fund mogul and nominee for Treasury Secretary by President-elect Donald Trump, has previously hinted that Federal Reserve Chairman Jerome Powell may be forced to resign. Regardless, he said he could finish his term leading the U.S. central bank.
“As the president said on Sunday, I completely agree that Jay Powell will serve out his term,” Bessent said on CNBC after speaking with Sen. Mike Crapo (Idaho) on Tuesday. told.
Mr. Bessent’s comments came amid heightened speculation about Mr. Powell’s fate following Mr. Trump’s victory in last month’s presidential election. Trump has a tense relationship with Powell, but the president-elect told NBC News over the weekend that he would not try to remove the Fed chair.
Trump told NBC News that Powell would likely resign “if asked,” but that he would not resign “if asked.” However, the president-elect said there are no such plans at this time.
Mr. Bessent’s comments mark a turning point for the Key Square Group founder, who has previously floated the idea of ​​a “shadow” chair to run the Fed.
Chairman Powell’s term ends in May 2026. President Trump selected him to lead the central bank, a role that Powell filled in 2018. President Joe Biden reelected him for another four-year term in 2022.
Powell said he does not believe President Trump can legally remove him from office and would not resign if asked.
