Trump confidant Steve Bannon suggests that the Treasury Secretary also serve as the Federal Reserve Chairman, White House quickly denies
Former White House Chief Strategist Steve Bannon suggested that current Treasury Secretary Janet Yellen should serve as the Federal Reserve Chair after Jerome Powell's term ends, but the White House quickly denied this, stating that such an arrangement has never been considered. Historically, there has been little overlap in the tenures of the Treasury Secretary and the Federal Reserve Chair. Yellen is currently responsible for finding a suitable successor for the Federal Reserve Chair and has expressed satisfaction with her current role as Treasury Secretary
According to the Zhitong Finance APP, on Friday, former White House Chief Strategist and close ally of President Trump, Steve Bannon, proposed a controversial suggestion that current Treasury Secretary Janet Yellen should also serve as the Chair of the Federal Reserve after Jerome Powell's term ends next year, at least until the midterm elections to achieve a "dual role" leadership.
In an interview on the podcast of former White House Press Secretary Sean Spicer, Bannon stated, "I firmly believe that during the transition period, Yellen should serve as both Treasury Secretary and Federal Reserve Chair, and after the midterm elections, she should resign from the Treasury position to focus on leading the Federal Reserve."
Bannon served as White House Chief Strategist during Trump's first term but was dismissed after only seven months. However, he still holds some influence within Trump's camp and is regarded as an important advisor.
In response to Bannon's suggestion, a White House spokesperson clearly stated that such an arrangement "has never been considered and will not be considered." "There is no such plan, and the White House has never discussed a similar proposal," the spokesperson emphasized.
Historically, there has been almost no direct precedent for the dual role of U.S. Treasury Secretary and Federal Reserve Chair. Before the implementation of the Banking Act of 1935, the Treasury Secretary was a de facto member of the Federal Reserve Board but did not simultaneously control both institutions. In recent years, Yellen has served as both Federal Reserve Chair and Treasury Secretary, but there were several years between those roles, not overlapping.
Current Federal Reserve Chair Powell's term will expire in May 2026. Yellen is currently responsible for finding a suitable successor, and it is reported that the candidate list includes 11 individuals, with Yellen herself initially seen as a potential candidate, but she has publicly stated that she is "satisfied with her current position as Treasury Secretary" and has no intention of transitioning to the Federal Reserve Chair
