The White House denies Besant's candidacy for Federal Reserve Chair.

Besant's "Successor" Rumors Brewing,FXCM foreign exchange platform account opening White House Urgently Clarifies

On June 10, the White House officially denied rumors that Treasury Secretary Scott Besant is a leading candidate to become the next Federal Reserve Chairman. Previously, some media had reported that several policy advisors inside and outside the Trump administration were pushing for Besant as a potential replacement for the current Fed Chairman Jerome Powell.

A White House spokesperson clearly pointed out, "The reports are not true," in response to external speculation about Besant's political maneuvers. However, despite this, market interest in the selection of the next Fed Chairman remains high, especially following Trump's recent public statements on personnel arrangements.

Trump Hints "Successor to Be Announced Soon," Sparks Widespread Speculation

Last Friday (June 6), President Trump publicly stated that he would "soon" announce Powell's successor. This remark quickly became a market focus. Although Powell's term is not set to expire soon (expected to end in May 2026), the Trump administration appears to have already begun preparing for a successor.

Due to the significant impact of the Fed's monetary policy direction in the current inflationary context, uncertainty over the successor has also caused short-term fluctuations in foreign exchange, bond, and stock markets.

Besant's Rising Influence Becomes a Media Focus

As Treasury Secretary, Besant plays an increasingly crucial role in Trump's second term. Not only is he outspoken on several core areas such as trade, tax reform, and regulatory policy, but he has also led multiple rounds of US-China and US-Europe economic dialogue negotiations, being seen as the "chief coordinator" of Trump's economic agenda.

For this reason, several media outlets report that Besant has become a key figure on the "potential candidates" list. Some commentators believe that Besant's financial background and close relationship with Trump might provide him with the political credentials to lead the Fed, despite his lack of practical experience in monetary policy making.

Warsh Also Considered as "Alternative," Increasing Personnel Suspense

It is reported that, besides Besant, former Fed Governor Kevin Warsh has also been listed as a candidate for succession. Warsh had discussions with Trump advisors as early as November 2023 about the possibility of becoming Treasury Secretary and is now another significant candidate for Fed Chair.

Warsh's resume includes serving as a Fed Governor during the George W. Bush administration, holding a rich background in monetary policy, and having influence both academically and on Wall Street.

Market Watchful Anticipation, Successor to Influence Future Policy Tone

Despite Powell's term not yet expiring, Trump's early personnel arrangements indicate his desire to establish stronger control over monetary policy. Market analysts generally believe that if a more "market-friendly" or "president-friendly" candidate takes over the Fed, future interest rate policies and monetary easing pace will become more flexible.

Currently, the Fed is at a sensitive period regarding interest rate policy, with broad external expectation that there is still uncertainty whether there will be a rate cut this year. In this context, whoever succeeds Powell will undoubtedly have a direct impact on the US dollar exchange rate, the US Treasury market, and global capital flows.

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