Trump May Replace Fed Chair Jerome Powell by Fall, Says Report

Trump May Replace Fed Chair Jerome Powell by Fall 2025

US President Donald Trump is reportedly preparing to replace Federal Reserve Chairman Jerome Powell by September or October 2025, according to a Wall Street Journal report. This development comes amid ongoing frustration from Trump over Powell’s monetary policy decisions.

The White House may soon announce a transition timeline, with several potential successors already under consideration.

Who Could Replace Jerome Powell?

Among the leading candidates being discussed by Trump’s advisors are:

• Kevin Hassett – Director of the National Economic Council
• Kevin Warsh – Former Federal Reserve Governor
• Scott Bessent – Current Treasury Secretary, supported by Hassett and Warsh’s advisers
• Christopher Waller – Sitting Fed Governor
• David Malpass – Former President of the World Bank

Scott Bessent has emerged as a common nominee from multiple adviser camps, giving him potential momentum in the selection process.

Why Powell’s Position Is Under Threat

President Trump has been critical of Powell’s cautious stance on interest rates and monetary tightening. Despite Powell’s efforts to maintain inflation control and financial stability, Trump reportedly views his leadership as insufficiently pro-growth, especially as the 2026 election cycle nears.

Replacing Powell could signal a shift toward a more accommodative and politically aligned Fed—a move that may have major implications for US economic policy and global markets.

What This Means for Markets

A leadership change at the Federal Reserve could lead to:

• Increased market volatility as traders reprice interest rate expectations
• Shifts in US Dollar strength depending on the nominee’s monetary stance
• A political debate about central bank independence

Investors should stay alert for White House statements confirming Powell’s exit or a nomination timeline.

Related Reading on Tredu.com

• How Fed Leadership Changes Impact Financial Markets
• Jerome Powell’s Monetary Policy Legacy: What’s Next?
• Federal Reserve Explained: What It Does and Why It Matters
• US Dollar Forecast Amid Central Bank Uncertainty

Key Takeaways

• Trump is reportedly considering replacing Fed Chair Powell by fall 2025.
• Kevin Hassett, Kevin Warsh, and Scott Bessent are among top candidates.
• A Fed shake-up could impact monetary policy, inflation outlook, and market sentiment.

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