Trump Administration Eyes Fed Shake-Up as Powell’s Future in Doubt

The Trump administration is preparing to search for a new Federal Reserve Chair this fall, signaling a potential leadership shift at the central bank well ahead of Jerome Powell’s term ending in May 2026. Treasury Secretary Scott Bessent confirmed the administration’s intent in a recent interview, noting that “a lot of good candidates” are under consideration.

President Trump has been openly critical of Powell’s reluctance to cut interest rates, arguing that the Fed’s current policy is stifling economic growth. In a handwritten note to Powell, Trump urged a significant rate cut, calling the Fed Chair “Mr. Too Late” and blaming him for costing the U.S. “a fortune”.

While Bessent has emerged as a potential successor, he expressed contentment with his current role, stating, “I will do what the president wants, but I think I have the best job in DC”. Other names floated for the position include Fed Governor Christopher Waller, former Fed Governor Kevin Warsh, and White House economic adviser Kevin Hassett.

The administration is expected to announce a replacement as early as October, with the goal of ensuring a smooth transition before Powell’s term concludes. The move comes amid broader economic debates over tariffs, inflation, and the pace of monetary easing.