Beisent stated that the next Fed chairman must look beyond the interest rate.

Scott Bessenet, the Secretary of the Treasury, told Japan's Nikkei News that the next Fed chairman must have market credibility, strong data analysis skills, and forward-thinking that goes beyond interest rate policy. He defined a "strong dollar" as maintaining the dollar's status as a reserve currency through sound economic policies, rather than pegging it to a fixed exchange rate. About 10 candidates are competing to succeed Jerome Powell in May, including James Bullard, Kevin Hassett, Kevin Warsh, Christopher Waller, and Marc Sumerlin.

U.S. Treasury Secretary Scott Basset stated that the next leader of the Fed should be able to view the institution from a broader perspective, rather than just adjusting the interest rate, and warned that the central bank's increasingly expanded responsibilities could threaten its autonomy.

On August 7, Besant spoke in Washington, outlining what he believes are the qualities required for the position. He told the Japanese Nikkei newspaper: "This person must have confidence in the market and the ability to analyze complex economic data." He also added that the next chairman should focus on future trends rather than overly relying on historical patterns.

According to Reuters, Bessent is leading the selection of a successor to the current Fed Chair Jerome Powell, whose term will expire in May. The candidate list currently includes an experienced economic advisor and a person who has served as a regional Federal Reserve Bank president.

When asked about President Donald Trump's repeated public calls for lower interest rates, Bessent stated that the president has made his position clear, but he emphasized that "ultimately, the Fed is independent."

Besant outlined the broader implications of the "strong dollar" policy.

Regarding currency strategy, Bessent explained that the "strong dollar" defined by his government is not tied to specific numbers in the market, but rather to the relative position of the dollar against other currencies. "A strong dollar policy is about formulating policies that can continue to maintain the dollar's status as a reserve currency," he said. "If we have sound economic policies, the dollar will naturally strengthen."

Besenet previously held talks with Japanese Finance Minister Kato Katsunobu regarding exchange rate issues. In May of this year, during the Group of Seven (G7) meeting, they agreed that the then current USD to JPY exchange rate was in line with the fundamentals. In June, the U.S. Treasury informed Congress that the Bank of Japan should maintain its tightening policy and believed this would help "normalize" the weak trend of the yen.

Besant stated that he believes the exchange rate can adjust itself as long as the Bank of Japan focuses on fundamentals like inflation and growth. He mentioned that Governor Ueda Kazuo and the Bank of Japan's board aim for the inflation target, not the exchange rate level.

The Bank of Japan ended its massive stimulus policy, which lasted for ten years, last year and raised the short-term Interest Rate to 0.5% in January, believing that Japan is close to sustainably achieving its 2% inflation target. Since then, policymakers have taken a cautious stance on further rate hikes.

Analysts point out that this slow pace of interest rate hikes is one of the reasons for the weak performance of the yen against major currencies. Although the inflation rate has remained above the target level of 2% for more than three consecutive years, Ueda urged a careful assessment of how U.S. tariffs might affect Japan's fragile economy.

The list of potential successors to Powell is continuously growing.

Currently, there are about 10 people who may succeed Powell. Among them are former St. Louis Fed President and current Dean of Purdue University's Krannert School of Management, James Bullard, and Mark Sumerlin, who served as an economic advisor to President George W. Bush. National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and current Fed Governor Christopher Waller are also being considered.

Trump has made it clear that he hopes the Fed Chairman is willing to cut interest rates. Hassett, Waller, and Walsh have all expressed a willingness to reduce borrowing costs. Bullard stated in May that he believes the Fed may cut interest rates before September. Summerlin's recent stance on monetary policy has not yet been made public.

After Fed Governor Adrianna Kugler resigned, the President took swift action this week to fill another Fed Governor position. The term of Economic Advisory Council member Stephen Milan will end on January 31. Trump is also continuing to search for candidates to fill the 14-year term that will begin on February 1.