Trump Administration Plans Early 2026 Fed Appointment to Succeed Powell
Treasury Secretary Bessent outlines strategy for Federal Reserve leadership transition

John Danels
Jul 1, 2025
The Trump administration is planning to use an upcoming Federal Reserve Board vacancy in January 2026 to shape the central bank’s leadership. Treasury Secretary Scott Bessent confirmed that President Trump may nominate a new governor for a 14-year term when Governor Adriana Kugler’s seat opens, with the possibility of elevating this person to chair once Jerome Powell’s term ends in May 2026. Although Powell can remain on the board until 2028, most chairs typically step down after their leadership terms expire.
Bessent indicated that current board members, including Christopher Waller, who supports renewed interest rate cuts and was appointed during Trump’s first term, are also being considered for the chair position. Additional names in the mix include Bessent himself, economic adviser Kevin Hassett, and former Governor Kevin Warsh. The administration’s strategy aims to align the Fed’s leadership with Trump’s priority of lowering interest rates, influencing the central bank’s direction in line with his economic agenda.