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.

US Treasury Secretary Scott Bessent said a “formal process” to identify a potential successor to Federal Reserve Chairman Jerome Powell is already starting. Bessent added, “I think it’d be very confusing for the market for a former Fed chair to stay on” after his term ends.