The race to lead the U.S. Federal Reserve is heating up well ahead of schedule. According to fresh reports, President Donald Trump is eyeing Treasury Secretary Scott Bessent as his top pick to replace Jerome Powell as Fed Chair, despite Powell’s term not expiring until May 2026. While the formal selection process hasn’t started, the move reflects Trump’s growing frustration with Powell’s handling of interest rate policy — a key friction point throughout their working relationship.
Trump’s frustration with Powell’s monetary policy has been no secret. He has repeatedly criticized the Fed Chair’s interest rate decisions and even threatened to fire him outright. Though recent Supreme Court rulings clarified that certain federal officials could be removed by the President, Powell enjoys a unique legal shield. The Court upheld that the Fed is a “quasi-private entity,” making Powell’s forced removal far more complex than other appointments.
Given the legal challenges, Trump’s early endorsement of Bessent may be a strategic move to get ahead of the 2026 deadline. Analysts suggest he could be laying the groundwork now to avoid delays when Powell’s term ends, or even testing whether he can expedite the process.
There’s also a historical precedent for gridlock. Other agencies like the CFTC and SEC have faced prolonged leadership vacancies due to political standoffs. Trump may be keen to avoid such issues by naming successors early.
While Bessent seems to be Trump’s favored candidate, names like Kevin Hassett, Fed Governor Christopher Waller, and ex-World Bank President David Malpass are also reportedly on the radar. Meanwhile, there is also a buzz that Kevin Warsh, a former Fed governor, is the second choice of Trump to replace Jerome Powell as the next U.S. Federal Reserve Chair. Powell’s term ends in 2026, and Trump’s team may announce a successor soon. Although Trump once threatened to fire Powell, he later backtracked, saying Powell was simply too slow in cutting interest rates.
Yet for now, Bessent appears to be the frontrunner. As Treasury Secretary, he has played a major role in shaping Trump’s economic and trade policies with China. While the official selection process hasn’t started, Bessent’s influence is expected to be key. When asked, he said he’s focused on his current role and trusts Trump to make the right call for the economy.
Whether this transition happens in 2026 or sooner remains uncertain. But one thing is clear: Trump wants a Fed Chair aligned with his vision, and Powell doesn’t fit the bill.
Scott Bessent is the current U.S. Treasury Secretary and reportedly Donald Trump’s top pick to succeed Jerome Powell as Federal Reserve Chair. He has played a major role in shaping Trump’s economic and trade policies.
Jerome Powell’s current term as the U.S. Federal Reserve Chair is set to expire in May 2026.
Trump’s early consideration is due to frustration with Powell’s interest rate policy and to potentially avoid future delays in leadership appointments.
No, firing Jerome Powell is legally complex due to the Federal Reserve’s “quasi-private entity” status, providing him a unique legal shield.
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