Two of President Donald Trump's contenders to succeed Chair Jerome Powell are increasing their alignment with the president in hopes to secure the nomination.

U.S. Treasury Secretary Scott Bessent, in an interview on Bloomberg Surveillance on Tuesday, said that a "formal process" is already starting to identify a potential successor to Federal Reserve Chairman Jerome Powell.

Treasury Secretary Scott Bessent said about finding a successor to Fed Chair Jerome Powell, whose term ends in May 2026: “There’s a formal process that’s already starting. There are a lot of great

It’s been a volatile week for Treasuries. The 30-year yield breached 5% for the first time since May as enduring inflation pressures prompted traders to pare odds of a September rate cut, while speculation that President Donald Trump might fire Fed Chair Jerome Powell also unnerved markets. ADVERTISEMENT

President Trump, left, has accused Fed boss Powell, right, of being too slow to cut interest rates and this week described him as a 'knucklehead'.

The Treasury secretary also stated his preference that Powell step down from the Fed entirely when his term ends. “Traditionally, the Fed chair also steps down as a governor."

The Trump administration is toying with removing Jerome H. Powell as chair of the Federal Reserve, accusing him of mismanaging a multibillion-dollar update to its Washington headquarters.

President Donald Trump's effort to appoint a new leader at the helm of the world’s most influential central bank is intensifying.