Bessent Defines Next Fed Chair Role as Powell’s Term Ends in May

* U.S. Treasury Secretary Scott Bessent outlines critical criteria for Federal Reserve leadership as the institution faces mounting challenges. * The search for a successor intensifies, with a shortlist of about 10 candidates. U.S. Treasury Secretary Scott Bessent has outlined key qualifications for the next Federal Reserve Chair, stating the new leader must have exceptional market credibility, advanced data-analysis skills, and a long-term, holistic view of monetary policy. Speaking in Washington, D.C., on August 7, 2025, Bessent also highlighted the critical challenge of balancing the central bank’s independence with its growing responsibilities, warning that any missteps could undermine the Fed's reputation and effectiveness. With Federal Reserve Chair Jerome Powell's term ending in May 2026, Bessent emphasized the need to protect the institution from political pressure, specifically addressing President Donald Trump’s public calls for lower interest rates. Bessent asserted that monetary policy must be based on economic fundamentals, not short-term political goals. On August 7, during his speech in Washington, D.C., U.S. Treasury Secretary Scott Bessent stated, “The Federal Reserve is at its strongest when focused on unbiased, data-driven decisions.” Bessent also reaffirmed his commitment to a “strong dollar” strategy, clarifying that this strategy does not depend on a fixed exchange rate. Instead, he argued that the U.S. can maintain the dollar’s status as the world's reserve currency by fostering sustainable economic growth and implementing sound fiscal policies. On August 7, during his speech in Washington, D.C., U.S. Treasury Secretary Scott Bessent remarked, “A strong America leads to a strong dollar — no artificial measures are needed.” The search for Powell’s replacement is intensifying, with reports indicating a list of about 10 candidates. Notable figures on the list include James Bullard, Kevin Hassett, Kevin Warsh, Christopher Waller, and Marc Sumerlin. Bullard, a former St. Louis Fed President and the current dean of Purdue University’s business school, has openly discussed scenarios that could justify a rate cut. Similarly, Hassett, Warsh, and Waller have expressed views that align with President Trump’s preference for lower borrowing costs, while in contrast, Sumerlin’s position on monetary policy is not yet clear. In a parallel effort, the administration is filling other vacancies on the Federal Reserve Board. Stephen Miran, a member of the Council of Economic Advisers, will serve the remainder of Governor Adriana Kugler’s term, which ends on January 31, 2026. The administration is also searching for a candidate to fill a full 14-year term that begins on February 1, 2026. Meanwhile, the cryptocurrency market reflects these broader economic uncertainties. According to CoinMarketCap, on August 11, 2025, at 12:00 UTC, Bitcoin (BTC) was trading at $29,415, with its 24-hour trading volume down 3.7%. In contrast, Ethereum (ETH) stood at $1,801, marking a 1.2% increase.