Scott Bessent, President-elect Trump’s pick to lead the Treasury Department, said Tuesday that Federal Reserve Chair Jerome Powell can serve out the remainder of his term leading the central bank.
“As the President said on Sunday, and I’m in complete agreement with him, that Jay Powell will serve out his term,” Bessent told CNBC.
His comments come after Trump said on NBC’s “Meet the Press” over the weekend that he would not seek to fire Powell when he takes office next year.
The Fed chair, whose term ends in 2026, said last month that he would not resign if asked to do so by Trump, noting that the president is “not permitted under the law” to fire or demote him or other Fed governors.
Powell was appointed by Trump during his first term in 2017 but almost immediately drew the former president’s ire by raising interest rates. The two frequently clashed over the Fed’s policies, and Trump reportedly discussed removing Powell, according to Bloomberg.
The Fed chair was reappointed by President Biden in 2021. Amid a surge in inflation, Powell oversaw an aggressive rate-hike campaign that brought interest rates to a two-decade high.
Earlier this year, Trump accused Powell, a lifelong Republican, of being “political” and suggested he would consider cutting rates to benefit Democrats in the election.
The Fed ultimately voted to begin cutting rates in September and again opted to lower rates at its November meeting, just days after the election. The central bank is widely expected to cut rates by another a quarter-point when it convenes again next week.
Bessent previously put forward the idea of naming a “shadow” Fed chair while Powell serves out the remainder of his term. However, Trump’s Treasury pick has since walked back the proposal.
