Trump’s Power Play: Treasury Secretary Role Could Be Stepping Stone to Fed Leadership
President-elect Donald Trump is considering a novel approach to filling two of the nation’s top economic positions in a strategic move that could reshape America’s financial leadership.
During a crucial meeting at his Mar-a-Lago club in Florida, Trump discussed an innovative succession plan with Kevin Warsh, potentially setting the stage for a significant shift in U.S. financial policy.
The proposed plan would first place Warsh in the Treasury Secretary position, with the possibility of later moving him to chair the Federal Reserve when Jerome Powell’s term ends in 2026. This unusual arrangement, discussed during their Wednesday meeting, suggests Trump is planning well beyond his potential first days back in office.
Warsh has impressive credentials. As a former Federal Reserve Board member and investment banker, he combines practical financial experience with regulatory knowledge. His background at the Fed could prove particularly valuable if this two-step plan comes to fruition.
The financial community is watching these developments closely. Wall Street veterans note that having someone familiar with both Treasury and Fed operations could create smoother cooperation between these crucial institutions. However, some experts worry about the predetermined nature of such an arrangement.
While Trump seems to favor Warsh, he’s keeping his options open. Other notable candidates for the Treasury position include:
- Marc Rowan, the co-founder of Apollo Global Management
- Senator Bill Hagerty of Tennessee
- Robert Lighthizer, Trump’s former U.S. trade representative
In a related development, Trump is also considering Scott Bessent for a critical economic role. Bessent, known for his hedge fund expertise and teaching experience at Yale University, might lead the White House National Economic Council. Sources suggest he could potentially replace Warsh at the Treasury if the Fed chair transition occurs.
The timing of these discussions is significant. With Powell recently announcing a quarter-point interest rate cut, questions about future Fed leadership have gained importance.
During a recent press conference, Powell made it clear he would not step down if asked by Trump, setting the stage for potential tension between the current Fed chair and the president-elect.
Market watchers are particularly interested in how this arrangement might affect U.S. monetary policy. Warsh’s previous Fed experience suggests he understands the delicate balance between controlling inflation and promoting economic growth. His time in the private sector also brings a practical perspective to policy decisions.
The financial markets have responded cautiously to these developments. Investors are weighing the implications of having a Treasury Secretary selected with an eye toward future Fed leadership. This unique approach to filling these positions could influence market expectations about future monetary and fiscal policy coordination.
While Trump’s team hasn’t made any official announcements, these discussions reveal his active planning for key economic appointments. Carefully considering candidates who could serve in multiple roles shows a strategic approach to staffing the nation’s top financial positions.
As this story develops, all eyes remain on Mar-a-Lago, where more meetings with potential appointees are expected. The financial community, policymakers, and the public will watch closely to see how these plans unfold and what they might mean for America’s economic future.