Bessent confirms Fed chair selection process underway

Published 15/07/2025, 12:30
© Reuters

Investing.com -- Scott Bessent, United States Secretary of the Treasury, emphasized the importance of looking at inflation trends rather than focusing on individual data points during a Bloomberg Television interview Tuesday.

"I wouldn’t put too much emphasis on one inflation number," Bessent stated, noting that he had not yet seen the latest Consumer Price Index (CPI) figures. He added that it’s "important to look at the trend" and stressed that inflation is "not accelerating."

Regarding Federal Reserve leadership, Bessent confirmed that a formal process to select a successor to current Fed Chair Jerome Powell has already begun, though the final decision will be made at President Trump’s speed. He mentioned there are "a lot of good candidates in and outside of the Fed."

Bessent repeatedly emphasized Trump’s position on Powell, stating "Trump said many times he’s not going to fire Powell" and "as Trump says, he’s not looking to fire Powell."

On the topic of central bank independence, Bessent called an "independent central bank very important for policy" while noting the Fed has had "big forecasting errors and there may be one now."

Addressing speculation about Powell potentially remaining on the Federal Reserve Board after stepping down as chair, Bessent cautioned that such an arrangement would be "confusing," noting that "traditionally Fed chair also steps down from board."

Regarding China relations, Bessent described recent decisions on NVIDIA (NASDAQ:NVDA) chips as part of a "mosaic" of ongoing talks, stating "we’re in a good place on China now" and expecting to meet with Chinese counterparts "in the next few weeks."

Bessent also pushed back against market concerns about the August deadline, telling "market participants not to worry" and rejecting the "narrative of obsessive focus on the market." He emphasized they’re "not going to rush deals because of some market deadline."

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