Trump Narrows Fed Chair Race: Scott Bessent Out, “Both Kevins” Gain Ground
President Trump just cut the field for his next Federal Reserve chair nominee, and Treasury Secretary Scott Bessent isn’t on the list. “I love Scott, but he wants to stay where he is,” Trump told CNBC Tuesday, effectively taking him out of the running.
Trump’s focus is now on two frontrunners: Kevin Hassett, his National Economic Council director, and Kevin Warsh, a former Fed governor. Both “Kevins,” as Trump called them, seem to have his backing, giving them a clear edge over other candidates like Fed Gov. Christopher Waller.
With Fed Chair Jerome Powell’s term ending in May 2026, Trump is expected to make a decision soon. He also hinted he might pick someone short-term to fill a separate vacancy at the Fed, potentially setting up a tandem announcement.
Market watchers are watching closely, especially after the Fed’s recent decision to hold interest rates steady despite Trump’s pressure for cuts. Hassett’s odds jumped after Trump’s comments, signaling investor confidence in the “Kevin” approach.
Bottom line: Trump’s Fed pick will shape monetary policy amid economic uncertainty, and his narrowed list shows a preference for insiders aligned with his agenda rather than current Treasury leadership.
Source: MarketWatch