Topline
Treasury Secretary Scott Bessent told Bloomberg on Tuesday a “formal process” has been launched to find Federal Reserve Chair Jerome Powell’s successor, following months of pressure from President Donald Trump to have Powell step down from his role at the agency.
President Donald Trump has campaigned for Powell to step down from his role at the Fed.
Key Facts
Bessent, in an interview with Bloomberg, said a “formal process” has started to identify Powell’s successor as Fed chair, noting, “There are a lot of good candidates inside and outside the Federal Reserve.”
Bessent suggested Powell should step down as Fed governor once his term as chair ends in May 2026, ahead of his term as governor ending in January 2028—a move Bessent said would remove speculation Powell could serve as a “shadow Fed chair” and continue influencing monetary policy.
National Economic Council Director Kevin Hassett told ABC News on Sunday the Trump administration’s ability to fire Powell was “being looked into,” as Trump has reportedly discussed naming Powell’s successor by September, October or sooner, though an early announcement is historically rare.
Who Could Succeed Jerome Powell As Fed Chair?
Trump suggested last month there were “three or four” candidates under consideration to replace Powell. Among Powell’s possible successors are Hassett and former Fed governor and Powell critic Kevin Warsh, both of whom have discussed their candidacy with Trump administration officials in recent months, people familiar with the matter told the Wall Street Journal. David Malpass, a former Trump administration official and ex-World Bank president, is also being considered alongside Fed Governor Christopher Waller, the Journal reported. Warsh is the betting favorite to be the next Fed chair at 20% odds, according to Polymarket, followed by Hassett and Bessent as 18% odds each.
This is a developing story.