Davos Drama: Treasury Secretary Fires Warning at Powell as Trump Weighs Fed Successor

Treasury Secretary Scott Bessent publicly warned Federal Reserve Chair Jerome Powell against attending upcoming Supreme Court hearings related to President Trump’s attempt to remove a Fed board member. Bessent argued that Powell’s presence could appear as judicial influence, undermining the Fed’s independence. He also criticized Powell for pandemic-era asset purchases and internal compliance failures that triggered multiple senior resignations, signaling deeper governance concerns at the central bank.


Trump Poised to Shake Up the Fed Leadership

As Bessent’s warnings made waves, President Trump is preparing to announce his choice for Powell’s successor, potentially during his Davos address. Former Fed governor Kevin Warsh, technocratic Fed governor Christopher Waller, and BlackRock executive Rick Rieder are among the leading contenders, each bringing a distinct blend of independence, market experience, and policy approach. The selection is highly scrutinized, as it could influence U.S. monetary policy, interest rates, and investor confidence.


Geopolitics, Markets, and U.S. Strategy Collide

The tensions extend beyond the Fed. Bessent highlighted Trump’s Greenland ambitions as a strategic move for national security while urging European allies to share defense responsibilities.

With the Justice Department’s investigation into Powell and global markets watching every development, Davos has become a focal point for U.S. economic and political strategy. Investors are closely monitoring statements from Trump, Powell, and Bessent, aware that these decisions will reverberate across markets and central banking for months to come.