US Treasury chief does not see himself replacing Fed chair

[WASHINGTON] US Treasury Secretary Scott Bessent said on Wednesday that he wishes to remain in his current position, after a report emerged that he is a contender to succeed the Federal Reserve chair.

Asked which role he would prefer, Bessent told the House Ways and Means Committee that he has among the best jobs in Washington, although maintaining that he is “happy to do what President (Donald) Trump wants me to do.”

“I think that we are making great progress at Treasury,” he told lawmakers.

“I would like to stay in my seat through 2029,” he added, referring to a period through the end of Trump’s second presidency.

Bessent’s comments came after a Bloomberg News report this month that he was being considered for the job at the central bank.

Other possible contenders include former Fed official Kevin Warsh, the report added.

It said Trump plans to name a successor to Fed Chair Jerome Powell very soon, with Powell’s term in the position ending in May 2026.

Trump has pressured Powell to cut interest rates in recent months, accusing him of being too slow in doing so to boost economic growth.

Powell’s successor, who must be confirmed by the US Senate, will have to demonstrate that the Fed’s independence remains intact despite political pressure.

The Fed chief, who was first nominated by Trump to lead the central bank in 2017, has defended its independence when it comes to interest rates. AFP