Trump confirmed that Scott Bessent prefers to remain as Treasury Secretary and will not be considered to replace Jerome Powell as Federal Reserve Chair. Trump criticized Powell for not reducing interest rates quickly enough. Trump is considering four candidates for the Fed Chair position while expressing concerns over Powell's leadership. He acknowledged the importance of maintaining the Federal Reserve's independence, especially after investor reactions to his comments about potentially firing Powell. Legally, the president may only remove the Fed chair for just cause.
"I love Scott, but he wants to stay where he is," Trump said in an interview with CNBC, adding that Bessent was doing a great job and had told him as recently as Monday that he did not want the position.
Trump's repeated attacks on Powell, whom he has mockingly dubbed 'too late', have stoked concern about the US central bank maintaining its independence, which investors view as crucial to the health of the US economy.
Under legislation and US Supreme Court precedent, the president may only remove the Fed chair for cause, widely interpreted to mean proof of corruption or malfeasance.
Trump said he had four candidates in mind to replace Powell, including Kevin Warsh, who formerly served on the Fed's seven-member board of governors, and Kevin Hassett, the director of the White House National Economic Council.
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