The current Federal Reserve Chair, Jerome Powell, is set to finish his term in May 2026, creating a major leadership moment for the U.S. central bank. Powell’s term as a governor on the Fed board still runs through January 2028, but tradition suggests he may leave entirely after his chairmanship ends. President Trump is preparing to name a successor as chair in the months ahead. Powell’s approach to interest rates and inflation has been a major focus of criticism from the White House. �
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Trump to Announce Successor Early Next Year
President Donald Trump has publicly indicated he will announce his nominee for the next Fed chair early in 2026. Treasury Secretary Scott Bessent, who is leading the selection process, confirmed the search and interviews are underway. Trump said he already “knows who he plans to pick,” but has not made the final decision public yet. The nominee will require U.S. Senate confirmation before taking office. �
Anadolu Ajansı
Top Contenders for Fed Chair
Several names are currently considered front runners to replace Powell:
• Kevin Hassett – Director of the National Economic Council and long-time Trump economic adviser.
• Kevin Warsh – Former Federal Reserve governor and economic expert with deep central banking experience.
• Christopher Waller – Current Fed governor with policy experience.
• Michelle Bowman – Vice Chair for Supervision at the Fed, focused on banking regulation.
• Rick Rieder – Chief Investment Officer at BlackRock, known for market experience. �
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Shift in Monetary Policy Expectations
Markets and economists are watching the leadership change closely because the Fed chair plays a central role in guiding U.S. monetary policy. Many analysts believe that under new leadership the central bank could lean toward lower interest rates, though forecasts vary. Decisions from the next chair could have major impact on inflation, growth forecasts, and financial markets worldwide. �
Reuters
Political and Legal Tensions Around the Fed
The process has become politically charged, with ongoing legal and political tensions involving Powell and other Fed governors. The U.S. Supreme Court is considering a case involving the attempted removal of a Fed governor, highlighting broader debates over the independence of the central bank. Federal Reserve independence remains a central concern for economic stability. �
AP News
What Comes Next
The Fed’s next chair will likely be confirmed and announced before Powell’s term expires in May. Investors and policymakers are watching economic data, interest rate expectations, and political developments as the 2026 transition approaches. The decision will shape global monetary policy and could affect markets ranging from stocks to crypto. �