Trump's Personal Remarks on Besant? Mentioned Then Retracted as Next Fed Chair Candidate

"Besant Being Considered for Next Chair," Says Trump,
Then Quickly Backtracks: "Not Seriously Considering Him"
Final Decision on Appointment Expected Before Christmas

U.S. President Donald Trump stated that he is considering Treasury Secretary Scott Besant as the next Chair of the Federal Reserve (Fed). Although he immediately retracted the statement, observers interpreted his remarks as a glimpse into his intentions regarding the appointment of the next Fed Chair.

On the 28th, during a speech to business leaders in Tokyo, Japan, President Trump said of Secretary Besant, "I am considering him for the position of Fed Chair." There are currently five candidates being discussed for the next Fed Chair. The current candidates are Michelle Bowman, Vice Chair for Supervision at the Fed; Christopher Waller, Fed Governor; Kevin Hassett, Chairman of the National Economic Council; Kevin Warsh, former Fed Governor; and Rick Rieder, Global Chief Investment Officer at BlackRock.

Soon after, apparently aware of the potential repercussions of his comment, President Trump said, "He likes being at the Treasury," and added, "In fact, I am not seriously considering him."

President Trump also praised Secretary Besant, saying, "He is doing an excellent job. I do not calm the markets, but he does," highlighting Besant's performance.

Although President Trump quickly changed his statement, analysts suggest that this indirectly demonstrates Secretary Besant's standing within the administration. Amid ongoing concerns over President Trump's frequent calls for interest rate cuts and potential threats to the Fed's independence, the Financial Times (FT) reported, "Besant has been regarded as a restraint on the President's excesses."

Additionally, Secretary Besant has supported President Trump's calls for interest rate cuts, lending weight to the President's position. In an interview before the August meeting, he argued, "The current borrowing costs (interest rates) need to be at least 1.5 percentage points (150 basis points) lower."

President Trump's latest remarks are seen not as a simple slip of the tongue, but as a calculated political message. He has repeatedly mentioned specific individuals ahead of major personnel decisions, then intervened directly to manage the situation if market reactions were excessive or negative. A notable example is Chair Powell. In July, President Trump effectively mentioned the timing of Powell's dismissal by saying, "He will be gone within eight months," but when controversy over Fed independence arose, he responded by saying the possibility of dismissal was "highly unlikely," seeking to defuse the situation.

FT reported that President Trump is expected to make his final decision on the next Fed Chair between November and Christmas in December.