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Investing.com -- Treasury Secretary Bessent remains viewed by Washington insiders as the leading contender to succeed Jerome Powell as chair of the Federal Reserve, according to Bank of America in a note on Wednesday.
In its latest Washington Matters note, BofA said that while experts “were noncommittal” on who the next Fed chair might be, “several suggested Treasury Secretary Bessent could ultimately be the pick.”
The comments come amid an increasingly tense policy backdrop in Washington, with a government shutdown entering its third week and uncertainty around the Fed’s independence.
BofA analysts Stephen Juneau and Joseph Saravalle wrote that “the Supreme Court’s decision on Lisa Cook’s case will also have important implications for Fed independence.”
The court is expected to hear the case on the injunction that prevented Cook’s firing in January, though a ruling “may not come until March or later.”
According to legal experts cited by BofA, the court is likely to side with the administration, though it may still seek to distinguish the Fed from other independent agencies.
Beyond the Fed debate, BofA noted that “geopolitics and tariffs” have become central concerns in Washington.
“The shutdown is now in its third week, and there is little sign of progress towards a resolution,” the analysts said, adding that it “looks increasingly like it could near the record for the longest shutdown set in 2019.”