U.S. President Donald Trump indicated on Tuesday that Treasury Secretary Scott Bessent could be a contender to take over as Federal Reserve Chair after Jerome Powell, although he expressed satisfaction with Bessent’s current work at the Treasury.
While speaking to reporters at Joint Base Andrews in Maryland, Trump remarked, “Bessent is an option, and he’s very good. Well, he’s not, because I like the job he’s doing, right?”
Recent reports suggest that former Fed Governor Kevin Warsh and White House economic advisor Kevin Hassett are also in the running to replace Powell.
Trump has frequently criticized Powell, urging him to lower interest rates to avoid harming the economy. Meanwhile, Powell has indicated that he has no immediate plans to cut rates, citing uncertainty over how Trump’s trade tariffs might affect inflation.
On the topic of tariffs, Trump announced that a proposed 200% duty on pharmaceutical imports is expected to be implemented by the end of the month. His tariffs on major U.S. trading partners are set to take effect on August 1.
Trump’s comments came shortly after consumer price index data showed a rise in inflation for June. Analysts are worried that declining inventory levels among U.S. businesses might lead to these tariffs being passed on to consumers, potentially increasing inflation in the coming months.
Officials in the Trump administration argue that a tax bill nearing approval in Congress will enhance private sector investment and strengthen the U.S. economy. They maintain that while tariff increases may cause a temporary rise in prices, they shouldn’t lead to long-term inflation.
