Report: U.S. Treasury Secretary Janet Yellen is seen as one of the candidates for the next Chair of the Federal Reserve

According to media reports on Tuesday, current U.S. Treasury Secretary Scott Bessent is considered one of the candidates for the next Federal Reserve Chair. Some advisors from both inside and outside the Trump administration are advocating for Bessent to take on the role of the next Federal Reserve Chair. Bessent has become a strong contender for this position.

Trump stated last Friday that he would soon appoint a successor to current Federal Reserve Chair Jerome Powell. Reports indicate that formal interviews for the next Federal Reserve Chair have not yet begun. Powell's term will end in May 2026.

In response to the news, Bessent said, "I have the best job in Washington. The president will decide who is best for the U.S. economy and the people."

A senior U.S. government official denied the related reports but did not provide specific information. Subsequently, the White House refuted media reports about Bessent potentially being a candidate for the next Federal Reserve Chair, calling it untrue.

Bessent is currently leading the implementation of an economic reform plan involving significant changes in trade, taxation, and regulation. As the current U.S. Treasury Secretary, Bessent should play a key role in the search and interview process for the next Federal Reserve Chair. It is unclear whether he will recuse himself when the president makes a decision.

Other Candidates

Media reports citing informed sources indicate that other candidates being considered for the next Federal Reserve Chair include former Federal Reserve official Kevin Warsh, who interviewed for the Treasury Secretary position in the Trump administration last November. Warsh is a popular candidate for the next Federal Reserve Chair.

Other mentioned candidates include: White House National Economic Council Director Kevin Hassett, Federal Reserve Governor Christopher Waller, and former World Bank President David Malpass.

When asked about Warsh last Friday, Trump said, "He has a great reputation."

Tim Adams, President of the Institute of International Finance, stated that Bessent has a high level of trust in the global financial community and is an obvious choice. Adams also mentioned that Bessent is a "dark horse," while considering Warsh a good option as well.

Former White House Chief Strategist Steve Bannon said, "Bessent proved himself capable of implementing the president's agenda during the extremely turbulent first six months; he is not only a cabinet star but also a safe choice for global capital markets."

Economist and Trump ally Arthur Laffer stated that Bessent is excellent, but he already has a job and is not specialized in monetary policy. "I told the president that I think Warsh is the most suitable candidate."

Federal Reserve Independence as a Highlight

This year, the Federal Reserve, led by current Chair Powell, chose to keep interest rates unchanged, stating that a patient policy should be adopted amid the uncertainty brought by Trump's frequent use of tariff policies. The Federal Reserve believes these tariffs could weaken economic growth and raise inflation.

Trump first nominated Powell to serve as Federal Reserve Chair in 2017. However, he has frequently criticized Powell for not lowering interest rates in a timely manner and has repeatedly pressured him to cut rates. Trump has often stated that he should have a say in interest rates, raising concerns about whether the new chair will be obedient to the president Analysis suggests that the next Federal Reserve Chair must demonstrate to the market that the Federal Reserve remains independent and is not subject to political interference. Adams, the Chairman of the International Financial Association, believes that whether it is Bostic or Waller, the financial community is likely to trust that they will uphold the independence of the Federal Reserve