Fed Chair Jerome Powell can serve remainder of term, Scott Bessent says

Federal Reserve Chair Jerome Powell can finish his term leading the U.S. central bank despite prior insinuations that he could be pushed to step down, said Scott Bessent, a hedge fund magnate and President-elect Donald Trump’s pick for Treasury secretary.

“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 after a Tuesday meeting with Sen. Mike Crapo of Idaho.

Bessent’s comments come amid mounting speculation around the fate of Powell following Trump’s victory in the presidential race last month. While Trump has had a strained relationship with Powell, the incoming president told NBC News over the weekend that he likely would not try to remove the Fed chair.

Trump told NBC News that Powell would likely step down if “told,” but would not if “asked.” However, the president-elect said he did not have plans to do that at the moment.

Bessent’s statements mark a turn for the Key Square Group founder, who has previously floated the idea of a “shadow” chair to run the Fed.

Powell’s term as chair ends in May 2026. Trump chose him to lead the central bank, a role Powell took in 2018. President Joe Biden reappointed him to another four-year term in 2022.

Powell has said he did not believe Trump could legally push him out of the position and would not step down if asked.