James Bullard Removes Himself From Fed Chair Consideration as Treasury’s Bessent Seeks Revamp Amid Independence Concerns

James Bullard, former President of the St. Louis Federal Reserve, expressed willingness to accept the role of Federal Reserve Chair provided the position is set up for success, with a focus on maintaining low and stable inflation and respecting the Fed's independence. Bullard emphasized that anyone considered for the Fed Chair would insist on preserving the Federal Reserve's independence and stated he would operate within the framework of the Federal Reserve Act. He also indicated readiness to proceed according to the preferences of U.S. Treasury Secretary Scott Bessent. However, later reports indicated that Bullard removed himself from consideration for the position. Treasury Secretary Bessent highlighted the administration's open mind regarding the Fed Chair selection and stressed the need to find a candidate capable of revamping the Federal Reserve. Bessent pointed to foundational issues within the Fed, including organizational bloat, which he believes threatens the institution's monetary independence. He outlined three key criteria for the next Fed Chair: monetary policy expertise, regulatory policy experience, and the ability to manage and reform the Federal Reserve's structure.