Background on Jerome Powell’s Successor Search
Scott Bessent, the United States Secretary of the Treasury, announced that interviews for Jerome Powell’s successor as the President of the Federal Reserve (Fed) will commence on September 1st. There are currently 11 strong candidates under consideration for this position.
Powell’s Tenure and Trump’s Criticism
Jerome Powell’s term as Fed President concludes in May 2026. The ongoing process of selecting his successor has garnered significant attention, especially since President Donald Trump has frequently criticized the Fed for delaying interest rate cuts this year. Trump’s disapproval of the independent central bank’s decisions has been evident, with him openly calling Powell “foolish” and “stupid” in recent months.
Candidate Pool and Interview Process
Bessent highlighted to CNBC that the 11 candidates are “very strong contenders” for the position. He plans to meet with them before or after Labor Day to start formulating a list for President Trump.
“This group is incredible, comprising individuals currently serving at the Fed, those who have served in the past, and professionals from the private sector,” Bessent expressed. “I look forward to meeting all of them with an open mind.”
Though Bessent did not disclose specific names, media outlets suggest that current Fed governors Michelle Bowman and Christopher Waller, along with former Fed governor Kevin Warsh and National Economic Council Director Kevin Hassett, are among the candidates.
Additional names under consideration include former Fed St. Louis President James Bullard and Marc Sumerlin, a former economic advisor to President George W. Bush.
Tariff Revenue Expectations
Bessent also anticipates a substantial increase in tariff revenue generated by Trump’s trade policies. He emphasized that these funds will primarily be allocated to reducing federal debt rather than issuing rebates to American citizens.
“I’ve mentioned that tariff revenues could reach $300 billion this year, but I’ll need to revise that estimate,” Bessent told CNBC. “Our goal is to decrease the deficit relative to GDP, start paying down debt, and eventually use this as a form of compensation for the American people.”
Economic Outlook
Bessent believes the US economy could return to the “solid, low-inflation growth” experienced during the 1990s. However, he attributes current economic challenges in sectors like housing and low-income rental homes to high-interest rates.
Key Questions and Answers
- Who are the candidates for Fed Chair? There are 11 strong candidates under consideration, including current and former Fed governors, Kevin Warsh, and Kevin Hassett. Additional names include James Bullard and Marc Sumerlin.
- When will interviews for the new Fed Chair begin? Interviews are set to commence on September 1st.
- How will tariff revenues be utilized? The primary focus is to reduce federal debt, not issue rebates to American citizens.
- What is Bessent’s outlook for the US economy? Bessent expects a return to solid, low-inflation growth similar to the 1990s, with interest rates being a contributing factor to current economic challenges in specific sectors.
