Federal Reserve Chairman Jerome Powell may finish his term on the helm of the Federal Reserve despite previous suggestions that he may very well be pressured to resign, said Scott Bessent, a hedge fund magnate and Donald Trump's pick for Treasury secretary.
“As the president said on Sunday, and I completely agree with him, Jay Powell will serve out his term,” Bessent told CNBC after a gathering Tuesday with Sen. Mike Crapo of Idaho.
Bessent's comments come amid increasing speculation about Powell's fate following Trump's victory within the presidential race last month. While Trump has had a strained relationship with Powell, the brand new president told NBC News over the weekend that he probably not Try to remove the Fed chairman.
Trump told NBC News that Powell would probably resign if he was told, but not if he was “asked.” However, the president-elect said he had no plans to achieve this in the intervening time.
Bessent's statements mark a turnaround for the Key Square Group founder, who had previously floated the thought of one “Shadow” chair to run the Fed.
Powell's term as chairman ends in May 2026. Trump selected him to steer the central bank, a job Powell took on in 2018. President Joe Biden reappointed him for one more four-year term in 2022.
Powell said he didn’t consider Trump could legally oust him from office and wouldn’t resign if asked to achieve this.
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