Jerome Powell (in image) could be replaced. | Credit: Kent Nishimura/Getty Images.
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Key Takeaways
Jerome Powell has been the Federal Reserve Chair since February 2018.
Trump nominated Powell in 2017, but now calls for him to resign.
Bessent is one of the frontrunners to replace Powell as Fed Chair.
U.S. Federal Reserve Chairman Jerome Powell could be ousted a year ahead of his official leaving date, as Treasury Secretary Scott Bessent confirms that the process in finding his replacement is formally underway.
Speaking with Bloomberg, U.S. Treasury Secretary Scott Bessent again suggested that Fed Chair Jerome Powell should resign and confirmed that “there’s a formal process that’s already starting” to find his replacement.
“There are a lot of great candidates, and we’ll see how rapidly it progresses. It’s President Trump’s decision, and it will move at his speed.”
Powell, whose term as Fed Chair ends in May 2026, may be cut short.
He explains that these candidates come from both inside and outside of the Federal Reserve. The interview process is expected to ramp up in the coming months.
Donald Trump has consistently critiqued Powell’s approach, and most recently stated that if he quit, it would be “a great thing, I don’t know that he’s going to, but, he should.” Trump adds:
“Jerome Powell’s been very bad for our country. We should have the lowest interest rate on Earth, but we don’t.”
Bessent, a Wall Street veteran, is among the frontrunners gunning for Powell’s position.
Other notable candidates include tax-cut proponent Kevin Hasset, director of the National Economic Council, and Federal Reserve Vice Chair Michelle Bowman, who has long advocated for lighter bank regulations.
There’s also Kevin Warsh, a former Fed governor who has also been critical of Powell’s handling of U.S. inflation.
The Impact
Statements and decisions from the U.S. Federal Reserve have historically impacted traditional and crypto markets.
Critics have warned that an early replacement for Powell may undermine the Fed’s independence, and potentially politicize interest rate and policy decisions, which may stir FUD amongst investors.
Some analysts believe that his departure could cause limited damage. There could be a “sizeable” initial sell-off, but its impact could be mitigated with the appointment of a Chair who leans favorably towards lower interest rates.
The U.S. economy remains in a post-pandemic recovery period amidst straining geopolitical tensions. And whether Powell leaves in 2025 or in May 2026, the next Chair’s identity will have a profound impact on global markets.
An announcement could arrive as early as September 2025.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
