White House officials will begin searching for Federal Reserve Chair Jerome Powell’s replacement this fall, with Treasury Secretary Scott Bessent confirming the administration wants ample time to select a successor before Powell’s term ends in 2026.
Key Takeaways
- The White House will start interviewing Federal Reserve Chair candidates this fall, well ahead of Jerome Powell’s term ending in May 2026.
- Treasury Secretary Scott Bessent has indicated there’s no threat to Powell’s position or the Fed’s independence during his remaining tenure.
- President Trump has publicly urged the Federal Reserve to lower interest rates on his Truth Social platform.
- Discussions are planned regarding the Fed’s regulatory role in relation to other banking regulators including the Comptroller of the Currency and FDIC.
- Bessent reports “business as usual” in his regular meetings with Powell, with no immediate financial stability concerns requiring emergency measures.
Early Successor Search Begins
Treasury Secretary Scott Bessent announced the White House will begin interviewing potential successors to Federal Reserve Chair Jerome Powell this fall, establishing a six-month lead time before Powell’s term concludes in May 2026. The announcement, made during diplomatic engagements in Argentina, indicates the administration’s desire for a smooth transition at the central bank. While Powell’s four-year term still has over a year remaining, the early search reflects the strategic importance the Trump administration places on this appointment.
The Federal Reserve Chair position represents one of the most influential economic roles globally, with decisions affecting everything from mortgage rates to international currency values. The administration’s approach suggests they are taking a methodical approach to filling this critical position rather than rushing a decision as the deadline approaches. Powell, who was originally appointed by President Trump in 2018 and reappointed by President Biden, has navigated the Fed through extraordinary economic challenges.
🇺🇸 NEW: Secretary Bessent was asked who he thinks should replace Jerome Powell as Chairman of the Federal Reserve in 2026.
Bessent: “We think about it all the time.” pic.twitter.com/FiEF4uQ0JU
— Cointelegraph (@Cointelegraph) April 14, 2025
Powell’s Independence Assured
Despite President Trump’s previous criticisms of the Federal Reserve and recent calls on Truth Social for interest rate cuts, Bessent firmly stated there is no risk of Trump undermining Powell’s position or compromising the Fed’s independence during his remaining term. This assurance comes as financial markets closely monitor any signs of political interference with monetary policy. The Treasury Secretary’s comments appear designed to maintain market stability and confidence in the Fed’s decision-making autonomy.
Bessent emphasized the administration recognizes the distinction between the Fed’s monetary policy decisions and its regulatory responsibilities. While monetary policy independence remains sacrosanct, Bessent indicated there may be more discussion about the Fed’s regulatory stance. This distinction highlights the administration’s nuanced approach to Federal Reserve oversight, acknowledging the central bank’s multiple roles in the financial system while respecting established boundaries between political leadership and monetary policy.
This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always “late,” but he could now change his image, and quickly. Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) April 4, 2025
Regulatory Discussions on Horizon
Planned discussions will focus on the Federal Reserve’s regulatory stance in relation to its coordination with other financial regulators, including the Comptroller of the Currency and the Federal Deposit Insurance Corporation (FDIC). Bessent noted the Fed serves as one of three primary bank regulators, suggesting the administration may seek greater alignment or clarity regarding regulatory responsibilities. This regulatory review aligns with broader administration efforts to evaluate financial oversight frameworks.
In his regular meetings with Powell, Bessent reports no significant concerns about bond market developments or financial stability risks that might necessitate emergency monetary measures. He characterized their discussions as “business as usual,” suggesting a stable working relationship between the Treasury Department and the Federal Reserve. This stability provides important reassurance to financial markets that monitor the relationship between fiscal and monetary authorities for signs of potential conflict.
