White House Eyes Successor to Fed Chair Powell This Fall/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The White House will begin interviewing candidates this fall to replace Federal Reserve Chair Jerome Powell, whose term ends in May 2026. Treasury Secretary Scott Bessent announced the plan, emphasizing respect for Fed independence despite Trump’s pressure to cut interest rates. The search allows a six-month lead time for a smooth transition.
White House to Begin Search for Powell’s Successor – Quick Looks
- Timeline Announced: Fed Chair interviews will begin in fall 2025.
- Powell’s Term Ends: Jerome Powell’s tenure concludes in May 2026.
- Lead Time Built In: The six-month runway is meant to ease succession.
- Trump’s Pressure Continues: Trump urged rate cuts in April via Truth Social.
- Fed Independence Defended: Treasury Secretary Bessent said Powell won’t be ousted.
- Regulatory Debate Ahead: Bessent suggested re-evaluating the Fed’s role in bank regulation.
- Weekly Meetings: Bessent and Powell meet regularly to discuss financial conditions.
- No Alarm Yet: Bessent said financial stability doesn’t warrant emergency planning — yet.
White House Eyes Successor to Fed Chair Powell This Fall
Deep Look
WASHINGTON — The Trump administration will begin formal interviews this fall to identify candidates to replace Federal Reserve Chair Jerome Powell, Treasury Secretary Scott Bessent confirmed Monday, setting the stage for one of the most consequential central bank transitions in recent history.
Speaking from Argentina during an interview with Bloomberg TV, Bessent said the interviews will start in the fall of 2025, giving the administration roughly six months to choose and confirm a successor before Powell’s term expires in May 2026.
While Bessent provided no shortlist of names or specific timeline, he emphasized that the selection process would proceed “on schedule” and framed it as a routine move to ensure policy continuity and preparedness.
Trump Keeps Pressure on Powell
President Donald Trump has publicly pressured Powell and the Fed to slash interest rates amid ongoing economic volatility and trade war concerns.
On April 4, Trump posted on Truth Social, his social media platform:
“CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”
Despite such rhetoric, Bessent downplayed any suggestion that the White House was trying to undermine Fed independence or oust Powell early. “I’ve said repeatedly: the Fed has two duties. Monetary policy must remain a jewel box that’s preserved,” Bessent told Bloomberg.
Debate Over Fed’s Regulatory Role
While defending the Fed’s core monetary function, Bessent did suggest there is room to reassess the Fed’s bank regulatory authority, particularly in light of its shared role with the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC).
“I think we can have more of a discussion,” Bessent said. “It’s very easy to delineate between monetary and regulatory roles.”
The comment hints at potential structural or jurisdictional reforms within the U.S. financial regulatory framework — a subject likely to become more prominent as Trump continues reshaping financial oversight in his second term.
Powell and Bessent Maintain Open Line
Bessent also confirmed he and Powell meet regularly, often over weekly breakfasts, where they discuss a wide array of economic and financial matters.
Asked whether the two had discussed contingency plans for a potential financial shock, Bessent replied:
“Specifically, did we discuss some kind of ‘break the glass’? I think we’re a long way from that.”
He added that his most recent visit to the Fed was uneventful and that Powell did not raise particular concerns about bond market volatility or other financial instability risks.
You must Register or Login to post a comment.