So, that's how it is, a formal process has already been initiated, says Bessent in an interview with Bloomberg.
There are many very good candidates and we'll see how quickly we can make progress. It's President Trump's decision and we will act based on his message, he adds.
Bessent added that it would be "confusing" if Powell were to remain as a member of the Fed after his term as chairman expires.
The tradition is that the Fed chief also resigns as governor, says Bessent.
"Very confusing"
He adds that a debate has already arisen about how a "shadow chief" would create confusion ahead of the appointment of Powell's successor.
And I can say that I think it would be very confusing for the market if a former Fed chief stays on (in the board).
Trump has several times demanded that the Fed lower the country's interest rate, called Fed Chairman Jerome Powell slow and claimed that the country does not have any inflation.
New Trump demand
But at its meeting on July 29-30, the Fed's monetary policy committee (FOMC) is expected to keep the interest rate in the range of 4.25-4.50 percent - which Trump is reacting to again:
"The Fed should lower the interest rate by three points. Very low inflation", Trump writes on his social media platform Truth Social.
The statement comes on the same day as new statistics show that inflation in the US, according to the CPI measure - the increase in consumer prices in annual terms - rose to 2.7 percent in June, from 2.4 percent in May.
