Steve Bannon floats idea of Bessent running both Treasury and the Fed

White House confidante Steve Bannon has an unusual solution for who should take over as Federal Reserve Chair Jerome Powell next year.

In a podcast interview with Sean Spicer, who served as White House press secretary during President Donald Trump’s first term, Bannon recommended that Treasury Secretary Scott Bessent helm the central bank — while also keeping his current position.

“I am a big believer that on an interim basis, that Scott Bessent should be both the head of the Federal Reserve and the secretary of Treasury, and maybe get through the midterm elections, step down at Treasury and take over the Federal Reserve,” Bannon said for a show that will be aired at 6 p.m. Friday on YouTube, footage of which was obtained by CNBC’s Eamon Javers.

Bannon was chief White House strategist during Trump’s first term but lasted just seven months before the president fired him. However, he is still thought to be respected within the administration.

A White House response indicates there’s little if any interest in the proposal.

“Such an arrangement is not being and has never been considered by the White House,” a spokesman said.

Though there is no direct historical precedent, prior to the Banking Act of 1935 the Treasury chief served as an ex-officio Board of Governors member, before the position of Fed chair was created. Janet Yellen led the Fed then the Treasury, though those terms were several years apart.

Bessent has been leading the search for Powell’s successor when the chair’s term expires in May 2026. There reportedly are 11 candidates, of which Bessent was thought to be one until he publicly said he is content with his position at Treasury.

Trump has been persistently critical of the Fed for not lowering interest rates aggressively.