The search for a new Federal Reserve chair is on. Treasury Secretary Scott Bessent confirms the process to replace Jerome Powell is underway. The White House aims to announce a nominee by fall. Bessent suggests Powell should fully step down to avoid market confusion.

The Treasury secretary also stated his preference that Powell step down from the Fed entirely when his term ends. “Traditionally, the Fed chair also steps down as a governor."

U.S. Treasury Secretary Scott Bessent, in an interview on Bloomberg Surveillance on Tuesday, said that a "formal process" is already starting to identify a potential successor to Federal Reserve Chairman Jerome Powell.