“Well, I love Scott, but he wants to stay where he is,” Trump said. “I asked him just last night, ‘Is this something you want?’ He replied, ‘Nope, I want to stay where I am.’ Trump said he was taking Bessent off the list of potential Powell successors.

Trump’s announcement seems to finally end mounting rumors that Bessent might slide into the Fed’s top job. Bessent, who made his name as a hedge-fund chief before joining the Treasury, has become one of the most visible defenders of Trump’s economic and trade policies—earning a reputation for vocal support and public criticism of the Fed’s reluctance to cut interest rates in line with Trump’s repeated demands.

Mounting criticism of Powell from the Trump White House

The Federal Reserve chairmanship, currently held by Jerome Powell, will become vacant when his term expires in May 2026. Trump has spent the past year openly criticizing Powell for what he views as slow progress on interest-rate reductions and costly overhaul projects at the Fed’s headquarters, often making ominous threats about firing Powell and undermining central bank independence. Amid criticism on this encroachment from prominent voices including JPMorgan CEO Jamie Dimon, Trump has relented and signaled that he does not intend to remove Powell before the end of his term.

Bessent, for his part, has repeatedly sought to tamp down speculation about his interest in the Fed job. In late June, he told CNBC he believes he has “the best job in Washington” and intends to stay put as long as the president sees fit. Still, Bessent has remained closely tied to the selection process and has made waves by calling for internal reviews at the Fed, while also being the first member of Trump’s cabinet to confirm an official process was underway to choose Powell’s successor.

Bessent’s criticism has differed from that of other Trump advisors, who have questioned Powell’s oversight of the $2.5 billion renovation project at central bank headquarters in Washington. Trump and his advisors have openly discussed the possibility of firing Powell “for cause,” with some officials suggesting that the headquarters renovation could provide legal justification. Trump himself visited the construction site with Powell, the two of them engaging in a bizarre argument on live TV, wearing hard hats and looking at construction plans.

As the vetting process accelerates, Trump’s rhetoric signals his intent to pivot toward a Fed chair who closely aligns with his priorities: lower interest rates, responsiveness to White House goals, and a more circumspect approach to the Fed’s non-monetary functions.

Talking to Bloomberg Intelligence in July, Bessent said, “There are a lot of good candidates inside and outside the Federal Reserve.” Kevin Hassett, director of the National Economic Council, has been floated as a potential Powell successor, as have Kevin Warsh, a former Fed governor and Wall Street veteran with close ties to the Trump administration; Michelle Bowman, the current Fed vice chair; and Christopher Waller, a sitting Fed governor.

For now, the vacancy remains a matter of speculation, but Bessent’s self-removal from contention lends some additional shape to the race. In his own words, Bessent says he will “go where the president thinks that I am best suited,” yet maintains his preference for the Treasury role. Trump is expected to announce his final selection for Powell’s replacement soon, ushering in a new phase for the nation’s monetary policy.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.