Trump is said to want Secretary Bessent to replace Powell as Fed Chair.

New reports indicate that President Trump is seriously considering appointing Treasury Secretary Scott Bessent to replace Jerome Powell as Chairman of the Federal Reserve. Powell's term will expire in May 2026. Trump has clashed with the Fed Chairman numerous times and may want to replace him as soon as possible. He may also try to remove Powell violently, but that could cause chaotic effects on the fiscal policy of the United States. Trump Eager to Replace Powell The Federal Reserve is an important component of U.S. financial policy. Therefore, this is a major concern of President Trump. Currently, Powell's term as Fed Chair will expire in May 2026, and there are reports that Trump is considering Treasury Secretary Scott Bessent as a replacement. Although this is an unorthodox move, it is very significant, especially considering Trump's recent dissatisfaction with Powell. Recently, the CFTC has allowed many Commissioners to remain significantly beyond their terms, creating a situation where currently there are only two out of five Commissioners. Similarly, SEC Chairman Paul Atkins took months to receive Senate confirmation, delaying official work. If Trump appoints Bessent right now, he could be poised to act quickly in May 2026. Some argue that he is planning to act sooner. In recent weeks, the President has repeatedly threatened to fire Powell, regardless of term limits, due to his interest rate policy.

However, the Fed Chair has vowed not to leave without a fight. He asserted that the President does not have the power to fire him and is ready to oppose this viewpoint. In May, the Supreme Court ruled that Trump could dismiss certain federal appointees, but Powell was exempted. Specifically, the court stated that the Fed "is a uniquely structured semi-private entity" with special considerations. In other words, a legal battle could become chaotic, potentially causing foreign investors to shy away from the U.S. market. By clearly expressing his support for Bessent from the start, Trump may be setting up a way to replace Powell as soon as possible. However, all of this is just based on rumors.

According to Bloomberg, other potential candidates include Kevin Hassett, director of the White House Council of Economic Advisers, Christopher Waller, Fed governor, and former World Bank president David Malpass. Trump can choose anyone from among them to replace Powell, but that may not be relevant until the summer of 2026. Regardless, it seems clear that the President is not satisfied with the current Fed Chairman.