Trump considers new Fed chair: Who could take over from Jerome Powell?

Dubai: US President Donald Trump is actively weighing who could succeed Federal Reserve Chairman Jerome Powell, revealing to reporters on Wednesday that he has narrowed his shortlist down to “three or four” candidates. While he declined to name names, Trump’s comments come amid rising tensions between the White House and the Fed over interest rate policy.

Trump’s dissatisfaction with Powell has escalated in recent days, particularly as the Fed chair maintained a cautious “wait-and-see” stance on rate adjustments during back-to-back congressional testimonies this week. While Powell insists the central bank is in a good position to delay any moves until more economic clarity emerges, Trump has continued to call for immediate, steep cuts — from the current range of 4.25%-4.5% to as low as 1%-2%.

During a press conference in the Netherlands, Trump criticized Powell's leadership and reiterated that the Fed should slash rates by at least one percentage point, arguing there's “no inflation.” He didn’t clarify if he plans to dismiss Powell before the end of his term in May 2026 but hinted, “Maybe, just maybe, I’ll have to change my mind about firing him?”

When will Powell's current term end?

Trump, who appointed Powell to the post in 2018 and reappointed him in 2022, has attacked the Fed chair personally and publicly in recent days, calling him “a very stupid person actually” and “an average mentally person.” He even mocked Powell’s demeanor in a face-to-face meeting, reflecting a deeper strategy to undercut Powell’s authority.

Despite the heated rhetoric, Powell has said he intends to serve out his term as chair. Jerome Powell’s current term as Chair of the Federal Reserve is scheduled to expire on May 15, 2026, following his oath of office taken on May 23, 2022. He will continue serving as a member of the Board of Governors until January 31, 2028, unless he resigns earlier

Legal precedent, however, makes any forced removal difficult. The Federal Reserve Act of 1913 stipulates that board members, including the chair, are appointed by the president but confirmed by the Senate. While the president nominates the chair from among the board’s members, the chair’s removal is not a straightforward executive action — a detail that previously deterred similar threats from being carried out.

Still, speculation has grown that Powell may step down early or be replaced through more aggressive political maneuvering. So, who could step in if the seat does become vacant?

Names in the running

Scott Bessent – Treasury Secretary

Currently serving as Treasury Secretary, Scott Bessent is one of the most talked-about names in Washington. Bloomberg recently reported that Trump is considering nominating Bessent as Powell’s replacement. A veteran of Wall Street, Bessent was the chief investment officer at Soros Fund Management and founded Key Square Capital Management.

He hasn’t ruled out the job. Earlier this month, he told lawmakers he’d prefer to remain in his post until 2029 but added that he’s “happy to do what President Trump wants me to do.”

Chris Waller – Fed Governor

Appointed during the final weeks of Trump’s first term, Christopher Waller is already on the Fed’s board through 2030. Known for his dovish views and support for lower rates, Waller could be an easy internal pick. Despite initial resistance during his confirmation — which passed by a razor-thin 48-47 vote — he brings academic weight and continuity, having taught economics at top U.S. universities.

Kevin Warsh – Former Fed Governor

Kevin Warsh, who served alongside Ben Bernanke during the 2008 financial crisis, is another strong contender. His experience during turbulent economic times and close ties with Trump — who once considered him for Treasury Secretary — make him a favorite in some circles. Warsh is considered a hawk on rates, typically favoring tighter policy to control inflation.

Kevin Hassett – National Economic Council Director

Currently heading the White House’s National Economic Council, Kevin Hassett brings both political and academic experience to the table. A long-time conservative policy adviser, he previously led the Council of Economic Advisers under Trump. While Hassett once criticized efforts to fire Powell in his 2021 book, he has since softened that position — though it could become a point of contention in Senate hearings.

Road ahead?

Though Powell’s current term as Fed chair ends in May 2026, pressure is clearly mounting. Whether he serves the full term or is replaced earlier, the White House appears determined to shift the tone and direction of U.S. monetary policy. With Trump now openly talking succession plans, attention will focus on who among the shortlisted candidates will align best with his economic vision — and how smoothly that transition might go.