Who Will Replace Jerome Powell? Trump Eyes New Fed Chair Amid Growing Tensions With Central Bank

Key Points

• It seems likely that President Trump will announce a replacement for Jerome Powell as Fed chair soon, possibly before his term ends in May 2026.
• Potential candidates include Kevin Warsh, Kevin Hassett, Scott Bessent, David Malpass, and Christopher Waller, with Kevin Warsh often mentioned as a top contender.
• There is controversy around Trump’s plans, with some questioning the legality of replacing Powell early.

Background

Jerome Powell has been the Chair of the Federal Reserve since 2018, with his current term set to end in May 2026. However, recent reports suggest that President Trump is dissatisfied with Powell’s leadership, particularly regarding interest rate policies, and may announce a successor earlier than expected.

Potential Successors

Based on recent news and analysis, here are the leading candidates to replace Powell:

• Kevin Warsh: A former Fed governor (2006-2011), currently a fellow at the Hoover Institution and lecturer at Stanford, known for his hawkish stance on inflation.
• Kevin Hassett: Current Director of the National Economic Council, a close ally of Trump with economic expertise.
• Scott Bessent: Current Treasury Secretary, often mentioned as a leading candidate due to his role in the administration.
• David Malpass: Former president of the World Bank, with extensive experience in international finance.
• Christopher Waller: Current Fed governor, offering potential continuity due to his familiarity with the Fed’s operations.

Timing and Controversy

Trump has indicated he might announce a pick by September or October 2025, which has raised questions about the legality and process of replacing Powell before his term ends. The White House has denied that a decision is imminent, but Trump’s comments suggest active consideration.

Survey Note: Detailed Analysis of Potential Fed Chair Successors

Jerome Powell’s tenure as Chair of the Federal Reserve, which began in February 2018 and was renewed for a second term in May 2022, is scheduled to conclude in May 2026. However, recent developments indicate significant political pressure for his replacement, driven by President Donald Trump’s dissatisfaction with Powell’s monetary policy decisions, particularly the Fed’s stance on interest rates. This note provides a comprehensive overview of the potential successors, the context surrounding the potential early announcement, and the implications of this transition.

Context and Timeline

Powell’s role as Fed chair is pivotal, influencing monetary policy, inflation, and economic stability. His term as chair ends in May 2026, but his position as a governor extends until 2028, adding complexity to any potential replacement. Recent reports, such as those from CNN and Forbes, highlight Trump’s intention to announce a successor “very soon,” potentially as early as September or October 2025. This move is seen as a strategic signal to Powell, with Trump expressing frustration, including a recent suggestion for Powell to resign, as noted in The New York Times.

The White House, however, has clarified that no imminent decision is expected, according to The New York Post, creating a tension between Trump’s public statements and official communications. This discrepancy has fueled debate about the legality and constitutional implications of replacing a Fed chair before their term ends, with some, like CNBC, questioning the feasibility of such actions.

Potential Successors

The following table summarizes the leading candidates, their backgrounds, and reasons for consideration, based on recent analyses from Yahoo Finance and other sources:

Kevin Warsh stands out as a frequent mention, with reports like Forbes noting him among Trump’s shortlist of “three or four” candidates. His hawkish views on inflation and past criticisms of the Fed’s credibility align with Trump’s preferences, making him a strong contender. Similarly, Scott Bessent’s role as Treasury Secretary positions him as a natural choice, while Christopher Waller’s current position within the Fed offers a potential for seamless transition.

Implications and Controversy

The early announcement of a successor, as suggested by Investopedia, could have market implications, with Business Insider reporting immediate reactions in Treasury yields and the dollar. The controversy lies in the unprecedented nature of this move, with legal scholars debating whether Trump can force Powell out before his term, given the Fed’s independence. This tension underscores the political nature of the appointment, with Trump’s desire for loyalty and influence over monetary policy at odds with the Fed’s statutory autonomy.

Historical Context

Historically, Fed chairs have served multiple terms, with predecessors like Alan Greenspan (1987-2006) and William McChesney Martin (1951-1970) serving for extended periods. Powell’s potential early replacement would mark a significant shift, reflecting the current administration’s aggressive stance on economic policy. This context is detailed in Wikipedia, which outlines the appointment process and the chair’s role.

Conclusion

As of June 28, 2025, the race to replace Jerome Powell as Fed chair is heating up, with Kevin Warsh, Kevin Hassett, Scott Bessent, David Malpass, and Christopher Waller emerging as key contenders. Trump’s intention to announce a successor soon, potentially before May 2026, adds urgency and controversy to the process, with significant implications for monetary policy and market stability. This situation reflects the ongoing tension between political influence and the Fed’s independence, a dynamic that will likely shape economic discourse in the coming months.

Key Citations

• A look at who could replace Powell as Fed chair Yahoo Finance
• Trump’s ‘shadow’ Fed chair plan could undermine Jerome Powell CNN
• When Will Trump Name New Fed Chair? What To Know As He Eyes Forbes
• Trump Encourages Powell to Resign in Latest Attack on the Fed Chair New York Times
• Trump Considers Naming Successor to Fed Chair Powell Early Investopedia
• White House says pick to replace Fed’s Powell not ‘imminent’ after New York Post
• Treasury Yields and the Dollar Slip As Trump Said to Mull Powell Business Insider
• Trump’s war against the Powell Fed has taken another political turn CNBC
• Jerome Powell Wikipedia
• Chair of the Federal Reserve Wikipedia