(ZeroHedge)—U.S. Treasury Secretary Scott Bessent confirmed on Tuesday that a “formal process” is underway to find a potential successor to Federal Reserve Chairman Jerome Powell.
In an interview with Bloomberg Surveillance, Bessent remarked, “There are a lot of great candidates, and we’ll see how rapidly it progresses.”
He also noted that it would be confusing for Powell to stay on at the Federal Reserve after his term as chair concludes.
Since last month President Donald Trump has intensified his criticism of Federal Reserve Chairman Jerome Powell, repeatedly accusing him of mismanaging monetary policy and calling for aggressive interest rate cuts.
Trump has argued that Powell is acting too slowly to respond to economic conditions and said, “Maybe I should go to the Fed… Am I allowed to appoint myself at the Fed? I’d do a much better job than these people.”
He has labeled Powell with a series of insults, calling him “stupid,” “too late,” “a numbskull,” and demanding the Fed slash rates by a full percentage point to stimulate the economy.
Trump’s attacks continued into July, growing even sharper. On July 8, he declared that Powell “should resign immediately.” A few days later, he criticized Powell over cost overruns tied to a $2.5 billion renovation project at the Federal Reserve, referring to him as a “knucklehead” and “stupid guy.”
Last week, Office of Management and Budget Director Russell Vought also criticized Federal Reserve Chair Jerome Powell for a renovation project he called “too lavish,” referring to it as “Versailles on the National Mall.”
On CNBC, Vought cited “fundamental mismanagement” at the Fed.
Meanwhile, National Economic Council Director Kevin Hassett, a potential successor to Powell, added, “If there is cause to fire Powell, Trump has the authority to do so.” The criticism appeared coordinated, with other figures like Fed candidate Kevin Warsh and Vice President J.D. Vance joining in.
Trump also reiterated his demand for rates to be cut to around 1%. Members of his team suggested they might review the renovation project as a possible justification to remove Powell “for cause.”
Preparing for the Unexpected: Your Essential Partner in Health Readiness
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