Trump’s Fed chair pick puts Bessent in the crosshairs. What he has to lose.

Subscribe to enjoy similar stories. Treasury Secretary Scott Bessent is on the precipice of what may be the defining event of his government career. President Donald Trump has said he will choose the next chair of the Federal Reserve by early January.

Bessent has organized and supervised the vetting process, using it to define an agenda that could produce sweeping change at the central bank—and lower interest rates. Trump’s choice could make that change a reality, validating Bessent’s vision, even if Trump doesn’t fully share it. Or the transition could go awry, leaving Bessent damaged in Trump’s eyes, or even fired from his Treasury post.

Trump has been clear that the stakes are high for Bessent. “The only thing Scott is blowing it on is the Fed because the Fed, the rates are too high, Scott," Trump said in November, while otherwise showering Bessent with praise. “If you don’t get it fixed fast, I’m going to fire your ass." Trump smiled when he said that, and spoke in a tone that suggested he was joking.

Trump defers to Bessent more than almost anyone else in his political orbit. But the president has repeatedly spoken of his frustration with first-term Treasury Secretary Steven Mnuchin, who recommended current Fed Chair Jerome Powell for the job. “Steve ‘Manouychin’ really gave me a ‘beauty’ when he pushed this loser," Trump posted on social media in August, apparently deliberately mangling Mnuchin’s name.

Bessent’s vetting process is designed to avoid that disappointment—both for the president and himself. His goal from the outset: Find candidates who favor lower interest rates and better integration with the White House in setting monetary policy. Bessent has sent four final names to Trump for consideration.