The new report argues that President Trump is strongly considering Treasury Secretary Scott Bescent to replace Jerome Powell with the chairman of the Federal Reserve System. Powell’s term of office expires in May 2026.
Trump has been repeatedly arguing with his Fed chair and may be aiming to replace him as soon as possible. He could also try to force Powell off, but that could have awkward implications for our fiscal policy.
Trump is eager to replace Powell
The Federal Reserve is a key component of US monetary policy. So, of course, that is a key point of interest for President Trump.
Currently, Powell’s term as Fed chair is expected to expire in May 2026, and the report argues that Trump is already considering Treasury Secretary Scott Bescent as his replacement.
This is an unorthodox move, but it makes a lot of sense, especially given Trump’s recent complaints about Powell.
Recently, multiple commissioners have spent well past their expiration dates at CFTC, creating a quagmire where only two of the five commissioners are now.
Similarly, SEC Chairman Paul Atkins took several months to receive confirmation from the Senate, delaying official operations. If Trump now appoints Bescent, he could be prepared to act quickly in May 2026. Some debates suggest that he plans to act faster.
In recent weeks, the president has repeatedly threatened to fire Powell against his interest rate policy, regardless of term limits.
However, the Fed Chairman vowed not to leave without a fight. He asserts that the President has no right to fire him and is willing to compete with the key points.
In May, the Supreme Court ruled that Trump could fire certain federal appointees, but Powell was exempt. Specifically, the Fed claimed that it was a “own-of-a-kind structured semi-private entity” with special considerations.
In other words, the legal battle can be messy and can scare foreign investors from the US market.
By clearly signaling his support for Bescent this early on, Trump may have established ways to replace Powell as quickly as possible. Still, this is all based on rumors.
Other potential candidates include Kevin Hassett, Christopher Waller, directors of the White House National Economic Council, and former World Bank President David Malpus.
Trump could choose one of them to replace Powell, but it may not be relevant until the summer of 2026.
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