Will Treasury Secretary Yellen succeed Powell as Fed Chair? White House denies: Fake news.

As the term of The Federal Reserve (FED) Chairman Jerome Powell is set to conclude in May 2026, personnel changes expected in the White House have sparked market follow. U.S. President Trump has long had differences with Powell's interest rate policy, leading to speculation that his favored successor is current Treasury Secretary Scott Bessent. In response, the White House quickly denied the related rumors.

Becent is a potential candidate for Fed Chair, the White House hurried to clarify.

Bloomberg reported this morning that, according to multiple informed sources, U.S. Treasury Secretary Bessent is considered one of the potential candidates for the chair of The Federal Reserve (FED). This position is currently held by Powell, whose term is expected to end in May 2026:

According to reports, Trump places significant importance on Bessent and believes he has the capability to take over the Federal Reserve (FED). In addition to Bessent, former Federal Reserve (FED) board member Kevin Warsh is also on the consideration list.

( Is the US debt ceiling approaching again? JPMorgan warns that US debt could collapse, Bessent: The United States will never default )

The White House quickly stepped forward to refute this, stating that these are false reports and that the formal hiring process has not yet begun, attempting to quell external speculation. However, Trump only stated last week that he would "soon" announce the successor to Powell, which will undoubtedly become a global focus.

Trump and Powell's policy differences are not the first time.

The tense relationship between Trump and Powell is no news; he has criticized Powell's policy stance for being slow to react and suppressing economic recovery multiple times during his tenure, and has threatened to consider replacing him.

(Is Trump considering replacing Federal Reserve Chairman Powell? White House advisor: Still under review)

Bessent is regarded as a highly effective policy executor, leading a series of global trade strategies, tax initiatives, and regulatory reforms under the Trump administration. If he indeed takes over as the Chairman of The Federal Reserve (FED), it is expected to bring about a significant shift in the decision-making direction of the institution, attracting close attention from market investors.

From London to Washington: Bessent briefly attended the US-China trade negotiations and returned to the US early.

The Fed succession rumours come as Bessent is in trade talks with Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, Vice Premier He Lifeng and Commerce Secretary Wang Wentao. The two sides held a second day of talks in London's Lancaster House, focusing on controversial issues such as rare earth export restrictions.

(US-China trade restart consensus: New framework agreement reached in London talks)

Although the meeting has not yet concluded, Bessent stated that in response to the congressional hearing on June 11, he has left London early to return to the United States with Greer, while Lutnick will continue discussions with the Chinese side as needed.

Bessent described the talks over the past two days as "productive" when leaving the venue and emphasized that the remaining U.S. representatives will continue to negotiate with the Chinese side based on the developments in the situation. The U.S. goal is to complete this round of negotiations before Tuesday evening local time in the UK.

At the same time, the Trump administration accelerated bilateral trade negotiations with other countries including Mexico, India, and Japan. Choosing to make some concessions on technology controls towards China at this time will undoubtedly impact the broader global supply chain and geopolitical landscape.

This article discusses whether U.S. Treasury Secretary Yellen will succeed Powell as Fed Chair. The White House refutes: fake news first appeared in Chain News ABMedia.