US Treasury Secretary Scott Bessent has confirmed that the formal process to identify a successor to Federal Reserve Chairman Jerome Powell has officially begun. Powell's current term as Fed Chair expires in May 2026, and Bessent has suggested that Powell should step down from the central bank's board when his chairmanship ends, despite his term as governor running until 2028. Meanwhile, former President Donald Trump has indicated that Bessent is a potential candidate to replace Powell as Fed Chair. However, Trump noted that Bessent may not be the leading contender due to his strong performance as Treasury Secretary, a role in which Trump expressed satisfaction with Bessent's job. The selection process is underway as the Fed prepares for the leadership transition next year.