President Donald Trump is preparing to replace Federal Reserve Chair Jerome Powell, signaling a pivotal change in monetary policy leadership as he continues his push for interest rate cuts. Powell, who was originally nominated by Trump in 2017, is nearing the end of his term, set to expire in May 2026. However, Trump has already begun floating possible successors and appears eager to shift the central bank’s direction well before the deadline.
Among the top contenders to replace Powell is current Treasury Secretary Scott Bessent. Sources familiar with the matter have identified Bessent as the leading candidate under consideration for the role. Trump has referred to Powell as “Mr. Too Late,” sharply criticizing him for maintaining high interest rates while inflation has eased. The president has called for aggressive rate reductions, urging the Fed to slash rates by a full percentage point, calling it “rocket fuel” for the U.S. economy.
Bessent, while addressing members of Congress during a recent hearing, deflected questions about the potential Fed appointment by expressing his satisfaction with his current post. He told lawmakers he would prefer to remain Treasury Secretary through 2029, stating his commitment to carrying out the president’s economic agenda. Nonetheless, Bessent made clear that he is willing to serve wherever the president believes he is needed.
Another name reportedly under consideration is Kevin Warsh, a former Fed governor who was previously on Trump’s radar for high-level financial appointments. Warsh has long supported more proactive monetary policies and is viewed favorably by economic advisers close to the administration.
Trump has repeatedly criticized Powell for what he views as delayed responses to economic signals, particularly during his first term. In past public comments, the president labeled Powell and other Fed leaders “boneheads” for not pushing rates to zero. In his current term, Trump has escalated that rhetoric, saying Powell’s decisions have harmed the markets and stalled growth.
The president has stopped short of firing Powell outright, noting that the law does not permit early termination of a sitting Fed chair without cause. Still, Trump has made it clear that he has no intention of renominating Powell, who has already faced three consecutive meetings without a rate change under his leadership.
Powell, for his part, has stated his intention to finish his term but has not revealed whether he will remain at the central bank in any other capacity once his chairmanship ends.
