President Donald Trump is reportedly contemplating appointing U.S. Treasury Secretary Scott Bessent as his chief economic adviser if incumbent Kevin Hassett is chosen as the next Chairman of the Federal Reserve.
Additional Responsibilities For Bessent?
The Trump administration is planning to name Bessent as the Director of the National Economic Council (NEC), as the president prepares to pick Hassett for Fed Chairman, Bloomberg reported on Thursday.
If Bessent is named as the NEC Director, he would assume the role of chief arbiter of the economic portfolio of the administration. This would be in addition to Bessent’s current role as the Treasury Secretary, according to the report.
Market commentator, The Kobeissi Letter, reacted to this report on X and said, “A new era of financial policy is coming.”
Trump’s potential decision to appoint Bessent as his top economic adviser could have a significant impact on the U.S. financial policy, especially in the context of the anticipated changes in the Fed’s leadership and monetary policy.
The White House did not immediately respond to Benzinga’s request for comment.
Bessent’s Current Role And Trump Links
As the Treasury Secretary, Bessent currently plays a lead role in formulating fiscal policies, negotiating trade deals, enacting tariffs, and other key economic aspects under the second Trump administration.
He previously worked as a partner at Soros Fund Management and has known the Trump family for a long time, and was friends with Donald Trump’s brother, Robert Trump, as per the New York Times. Bessent’s data-driven approach and ideas to tackle national debt and budget deficit led Trump to choose him for the role of Treasury Secretary.
Hassett Emerges As Possible Fed Pick
Hassett, the current Director of the NEC, is expected to replace Jerome Powell as the next Fed Chair after Trump on Tuesday referred to him as a “potential future Fed Chair” during a White House event. However, the president hasn’t made an official announcement yet.
This shift could signal a move towards a more relaxed monetary policy. Hassett, known for his supply-side philosophy, believes that the battle against inflation is won and that maintaining a restrictive policy is unnecessary.
Despite calling the speculation about his potential nomination as the next Federal Reserve Chair a “rumor” on NBC News on Sunday, Hassett expressed his willingness to serve if chosen. He also highlighted the positive market response to the news of Trump’s potential pick for Powell’s replacement.
For months, Trump has pushed the Fed to cut interest rates, and selecting a successor to Powell—whose term as Fed Chair ends in May—would give him his strongest opportunity yet to reshape the institution.
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