Trump’s potential Fed shakeup may be underway as Scott Bessent, a known Bitcoin supporter, gains attention. Bessent, who currently serves as Treasury Secretary, is reportedly a contender to replace Federal Reserve Chair Jerome Powell. According to Bloomberg, advisers close to Donald Trump have floated his name for the role.
However, the White House quickly dismissed the report, as Reuters noted. Despite this denial, the list of candidates continues to grow. Alongside Bessent, the names include Kevin Warsh, NEC Director Kevin Hassett, Fed Governor Christopher Waller, and former World Bank President David Malpass.
Trump’s potential Fed shakeup is gaining urgency due to growing political and economic tensions. Trump has repeatedly criticized Powell’s cautious stance on interest rates. He believes the Fed has been too slow in addressing inflation and economic stagnation. Trump has also pressured the central bank to lower rates more aggressively.
Although Powell’s term officially ends in May 2026, the Trump team appears eager to act sooner. Sources say the search for a new Fed chair will begin in the fall. Bessent confirmed this timeline in April, noting the process is routine. He also downplayed rumors about removing Powell early.
Even so, the push to replace Powell has raised concerns among economists. Many warn that firing the Fed chair could damage the institution’s credibility. Economists consider the Fed’s independence crucial for maintaining market stability.
In recent public statements, Powell has avoided political conflict. Instead, he has stressed the importance of data-driven policy. He continues to focus on the Fed’s dual mandate: maximum employment and price stability. Despite pressure, the Fed has not altered its decision-making to please political leaders.
Bessent has not confirmed whether he wants the job. When asked by Bloomberg, he gave no clear response. Still, his leadership over financial programs, including the U.S. Strategic Bitcoin Reserve, shows he is deeply involved in national policy.
As speculation builds, Trump’s potential Fed shakeup remains a major development in U.S. financial policy. A decision is expected soon, potentially shifting the direction of American monetary policy.
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