Federal administration set in motion Donald Trump's plans for Jerome Powell's succession as the head of the Federal Reserve
As the term of Jerome Powell as Chairman of the Federal Reserve nears its end in May 2026, several potential candidates have emerged for the coveted position. Here's an overview of the current status and potential successors:
## Potential Successors
1. **Kevin Warsh**: A former Federal Reserve Governor, Kevin Warsh has long advocated for a change in the Fed's approach to monetary policy. He has been on President Trump's shortlist for Fed positions previously and remains a strong contender for the chairmanship.
2. **Kevin Hassett**: Currently serving as White House economic adviser, Kevin Hassett has been mentioned as a potential successor. Trump has expressed admiration for Hassett, calling him "fantastic."
## Current Status of the Process
The process to replace Jerome Powell is officially underway, with Treasury Secretary Scott Bessent confirming a "formal process" has begun to identify Powell's successor. Bessent indicated that there are several good candidates both inside and outside the Federal Reserve. The White House aims to announce a nominee as early as October or November, although the timeline is at President Trump's discretion.
### Additional Points
- **Powell's Term and Future Role**: Powell's term as Fed Chair expires in May 2026, and technically, he could remain on the Fed's Board of Governors until January 2028. However, Bessent suggested that Powell should step down completely to avoid market confusion.
- **Rift with Trump**: The process is happening amidst a tense relationship between President Trump and Chairman Powell, with Trump having criticized Powell's monetary policies multiple times.
Overall, while the process is ongoing and several candidates are under consideration, no official nominees have been announced yet. The future of the Federal Reserve's monetary policy will depend on the decision made by President Trump in the coming months.
- Discussions about potential successors for Jerome Powell's position as Federal Reserve Chairman have included Kevin Warsh, who is known for advocating a change in the Fed's monetary policy and has been considered for Fed positions in the past.
- Another name on the list of potential successors is Kevin Hassett, currently serving as White House economic adviser, who has been mentioned for the position and has received praise from President Trump.
- Amidst ongoing talks about the Federal Reserve's next chairman, finance news and general-news outlets closely monitor the politics involved in the selection process, particularly the relationship between President Trump and the current Chairman, Jerome Powell, as well as the impact of the decision on stocks and overall business investment.
