U.S. Treasury Secretary Scott Bessent emerges as a potential replacement for Powell at the helm of the Fed.

The tense relationship between U.S. President Donald Trump and Federal Reserve Chairman Jerome Powell has entered a new phase with the emergence of a potential successor to Powell. According to Bloomberg, a growing chorus of informed voices and advisors from both within and outside the Trump administration are considering Scott Bessent, the current U.S. Treasury Secretary, as a potential new Fed chair.

Although Donald Trump has repeatedly threatened to remove Powell from his position, the Supreme Court has recently upheld the independence of the Fed. However, Powell’s term has less than a year remaining; it will expire in May 2026. Last Friday, Trump announced that he would designate a successor to Powell “very soon.” Among the currently limited shortlist of candidates, another name that has resonated in the U.S. is Kevin Warsh, a former Fed member whom Trump interviewed in November as a potential candidate for Treasury Secretary.

According to various sources detailed by Bloomberg, Bessent has entered the running. The economic head of the Trump administration is a key player in the Republican’s radical reforms, involving extensive changes in trade, taxes, and regulation. When asked about the possibility of becoming the next Federal Reserve Chairman, Bessent said this Tuesday that he has “the best job in Washington.” He then added that “the president will decide who is best for the economy and the American people.”

According to standard protocols, as Treasury Secretary, Bessent would traditionally play a key role in the search and interview process for the next Federal Reserve chair. Bloomberg does not clarify whether he will recuse himself when Trump officially begins looking for candidates.

“Given the confidence that the global financial community has in Scott Bessent, he is an obvious candidate,” said Tim Adams, president and CEO of the Institute of International Finance, in statements to the agency. “He is a dark horse candidate,” Adams added, noting that Warsh, who served on the Fed’s board from 2006 to 2011, would also be a strong option. For his part, when specifically asked on Friday about Warsh as the next Federal Reserve Chairman, Trump replied that “he is very well regarded.”

Despite having appointed Powell in 2018, Trump has been at odds with the current Fed chairman for months, even threatening to oust him. Donald Trump has repeatedly demanded that the Fed cut interest rates. The last request came last week when he called for an unprecedented one-point reduction. The magnate has also mocked the role of central bankers, even describing their job as tossing a coin. “It’s the best job in government. You show up at the office once a month and say, ‘Let’s flip a coin.’ And everyone talks about you like you’re a God,” the president mocked during an interview with Bloomberg last October.