Bloomberg Television
Will Trump Replace Fed Chair Powell Early?
Michael McKee, International Economics & Policy Correspondent for Bloomberg News, discusses pressure on the Fed from President Trump and potential candidates for Fed Chair after Jay Powell's term.
The dollar fell and US Treasuries rallied after a report that President Donald Trump is considering naming Federal Reserve Chair Jerome Powell’s successor well before the incumbent’s term is scheduled to end next May.
The Wall Street Journal said Trump may reveal his pick to run the Fed by September or October. The report follows weeks of lobbying by the president for Powell to lower borrowing costs.
Investors and analysts reckon Powell’s replacement will most likely share the president’s dovish bias, prompting speculation interest rates could eventually fall faster and deeper than markets are currently pricing. An early selection could also confuse markets by forcing them to monitor the monetary policy commentaries of Powell and his replacement.
“This increases the risk that Powell will become a ‘lame duck’ in his final months as Fed chair, and with it the risk of earlier interest rate cuts,” said Michael Pfister, an FX analyst at Commerzbank AG.
Potential contenders to succeed Powell include former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, National Economic Council Director Kevin Hassett, former World Bank President David Malpass and US Treasury Secretary Scott Bessent, Bloomberg News has previously reported.
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Published Jun 26, 2025
