Trump Administration Plans Early 2026 Fed Appointment to Succeed Powell

The Trump administration is strategizing to utilize the upcoming Federal Reserve Board of Governors vacancy in early 2026 to appoint a successor to current Chair Jerome Powell, according to Treasury Secretary Scott Bessent.

 

"There's a seat opening up, a 14-year seat opening up in January. So we've given thought to the idea that perhaps that person would go on to become the chair when Jay Powell leaves in May, or we could appoint the new chair in May," Bessent stated during a recent interview. 

 

Governor Adriana Kugler's term is set to expire on January 31, 2026, presenting an opportunity for President Donald Trump to nominate a new governor for a full 14-year term. This individual could potentially be elevated to chair upon Powell's departure. Powell's term as chair concludes in May 2026, though his board membership extends until January 31, 2028. Traditionally, most Fed chairs have chosen to step down after their leadership term ends.

 

Bessent addressed concerns about potential confusion arising from appointing a new governor with the intention of later promoting them to chair. He indicated that current board members are also being considered for the chair position, suggesting a broad evaluation process.

 

Among the candidates reportedly under consideration are Governor Christopher Waller, appointed during Trump's first term, who has recently expressed support for resuming interest rate cuts. Other potential nominees include Bessent himself, economic adviser Kevin Hassett, and former Fed Governor Kevin Warsh. President Trump has emphasized his preference for a Fed chair who aligns with his agenda for reducing interest rates.

 

The administration's approach reflects a strategic effort to influence the Federal Reserve's future direction by aligning its leadership with the President's economic policies. This move underscores the administration's commitment to shaping monetary policy in accordance with its broader economic objectives.