Treasury Secretary Scott Bessent said Tuesday that he sees no reason for Fed chairman Jerome Powell to step down immediately.
“There’s nothing that tells me that he should step down right now,” Bessent said during an interview with Maria Bartiromo on Fox Business. “His term ends in May. If he wants to see that through, I think he should. If he wants to leave early, I think he should.”
Bessent has called for the Fed to launch a comprehensive internal review of the Federal Reserve, warning that “mission creep” has drawn the central bank into the realm of politics and distracted from its core monetary policy functions.
“There’s a real chance here for him, for his legacy — that he right-size the non-monetary policy functions of the Fed,” Bessent said.
Bessent is frequently named as a possible successor to Powell, with some speculating that Trump could ask him to fill both the Treasury Secretary and Fed chair roles at the same time. Some supporters of President Trump have argued that Bessent is perfectly placed now to serve the U.S. and the Trump administration’s agenda, warning against moving him to the Fed or doubling up his duties.
Also on Tuesday, Mohamed El-Erian, an influential investor, said Powell should step aside to protect the independence of the Fed.
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