In an interview with Bloomberg, Scott Bessent revealed that the Trump administration will begin the process of naming a new Fed chair in the coming weeks. This change may coincide with Jerome Powell's term ending in May 2026.
Replacement of Fed Chair
Scott Bessent confirmed that a seat will open in January, which could present an opportunity for appointing a new Fed chair. He stated, "We could appoint the new chair in May, or have them come in through the seat that opens in January."
Criticism of Fed Policies
Bessent criticized the actions of the Fed in 2022, saying they made a "gigantic mistake." He noted that the Fed is now "stuck looking down" and has failed in its duties.
Economic and Crypto Declarations
Bessent also highlighted that the proposed Stablecoin bill has a chance of being passed and could serve as an important tool in the economy. He emphasized the significance of stablecoins, stating they will "provide a new payment rail."
The choice of a new Fed chair could significantly impact U.S. financial policy. The escalating criticism of the current Fed leadership and the active search for new economic strategies create an intriguing political atmosphere.
