Big Take Fed Chair Scott Bessent? The Race to Replace Jay Powell
Jun 11, 2025
Nancy Cook and Saleha Mohsin, seasoned Bloomberg reporters, dive into the intrigue surrounding the selection of a new Federal Reserve Chair. They dissect President Trump's unique, reality-show-style approach to choosing a successor for Jerome Powell, spotlighting Treasury Secretary Scott Bessent as a top contender. The duo explores the delicate balance between political alignment and Fed independence, plus what Bessent's leadership could mean for monetary policy. Their insights shed light on the broader implications for the economy and financial markets.
AI Snips
Chapters
Transcript
Episode notes
Trump's Fed Chair Preferences
- President Trump wants a Fed chair who aligns more with his economic agenda, especially on interest rates.
- He seeks someone more malleable than Jerome Powell, but not a complete sycophant.
Fed Independence Importance
- The Federal Reserve is expected to be politically independent to focus on long-term economic goals.
- Politicians often have short-term election-related goals, contrasting the Fed's mandate.
Scott Bessent Emerging as Contender
- Scott Bessent's name emerged as a Fed chair contender due to his strong presence and policy successes.
- Finance insiders consider him the "adult in the administration" who calms markets and handles Trump well.