Scott Bessent, the U.S. Secretary of the Treasury, mentioned that "there are candidates currently being considered from the Federal Reserve (Fed) among the personnel," regarding the succession plan for Jerome Powell, whose term expires in May next year.
On the 30th of last month (local time), Minister Bessent mentioned two possibilities regarding Powell's succession plan in an interview with Bloomberg TV. One option is to appoint a successor to the chair position for the board member vacated in January, or to designate one of the current Fed board members as the chair.
On that day, Minister Bessent said, "The board member position, which has a 14-year term, will become vacant in January," adding, "I considered that person becoming the chair when Powell retires in May next year."
He added, "Alternatively, a new chair could be appointed in May next year. However, that position has a term of only two years."
Minister Bessent noted that there is someone currently considered among the Fed personnel for the next chair position, but he did not specify any candidates.
On the same day, Minister Bessent also indicated that he would not increase long-term bond issuance at the current interest rate level.
In response to a question about whether he would increase the proportion of long-term bond issuance, Minister Bessent countered, "Why would we do that at such interest rates? Why would we do that at a level more than one standard deviation above the long-term average interest rate?" He emphasized, "The time to do that would have been in 2021 and 2022."
Last year, Minister Bessent repeatedly criticized former Treasury Secretary Janet Yellen for relying on short-term bond issuance, stating that it was to lower borrowing costs for long-term bonds to stimulate the economy right before elections; however, he has continued the strategy of his predecessor since taking office.