Fed Chair Jerome Powell’s term ends in May 2026, although President Trump has already begun the formal process to select a replacement, according to Treasury Secretary Scott Bessent. Powell also holds the position of Fed Governor with his term ending in January 2028.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
“There’s a formal process that’s already starting,” said Bessent in a Bloomberg interview on Tuesday. He added that the process is “President Trump’s decision, and it’ll move at his speed.”
Who Will Replace Powell?
Bessent also said that the Fed Chair “traditionally” steps down as Governor when leaving the Chair position. “I think it would be very confusing for the market for a former Fed chair to stay on,” said the Treasury Secretary.
According to prediction platform Polymarket, there is a 33% chance that Trump will not announce his Fed Chair pick by December 31. At the same time, former Fed Governor Kevin Warsh and Bessent each have a 20% chance of being selected. White House economic advisor Kevin Hassett holds a 19% chance while Fed Governor Christopher Waller has a 6% chance.
Head over to TipRanks’ Stock Analysis and News feed for the latest breaking news.
