Treasury Secretary Confirms Fed Chair Successor Search Underway

• Treasury Secretary Scott Bessent confirmed the search for Jerome Powell’s Fed Chair replacement has begun, and the process may move quickly with many qualified candidates under consideration.

• President Trump continues pressuring Powell to resign over interest rate policies, while Senate investigations add more uncertainty to Powell’s future at the Fed.

• Kevin Warsh leads prediction markets with 20% odds to become the next Fed Chair, followed by Kevin Hassett and Scott Bessent at 18% each.

Treasury Secretary Scott Bessent has officially confirmed the start of a succession process for Federal Reserve Chair Jerome Powell. The announcement signals potential changes ahead for U.S. monetary policy as Powell’s term approaches its May 2026 expiration.

Speaking to Bloomberg Television, Bessent emphasized the administration’s commitment to finding qualified leadership for the central bank. “There are a lot of great candidates,” he stated, indicating the search will consider internal Fed officials and external candidates.

The succession planning comes amid mounting political pressure on Powell from President Donald Trump, who has repeatedly criticized the Fed Chair’s interest rate policies. Trump has called for Powell’s resignation, arguing that current rates remain too restrictive for economic growth.

Political Pressure Intensifies Around Powell’s Future

Powell faces increasing scrutiny beyond political criticism. Senate investigations into his previous testimony have added another layer of complexity to his leadership position. These developments have fueled speculation about whether Powell might step down before his term ends.

The political dynamics have created uncertainty around Powell’s tenure at the Fed. Trump’s public criticism of monetary policy decisions has intensified debate about the central bank’s independence and future direction.

The unusual nature of having a sitting Fed Chair face such direct political pressure. This situation has prompted discussions about succession planning earlier than typically occurs during Fed leadership transitions.

Leading Candidates Emerge for Fed Chair Position

Prediction markets have begun tracking potential successors to Powell. Polymarket data shows that Kevin Warsh, former Federal Reserve governor, is leading with 20% odds of becoming the next Fed Chair.

Kevin Hassett and Scott Bessent follow closely, each holding 18% chances according to current market sentiment. Currently serving as a Federal Reserve governor, Chris Waller trails with 6% probability.

After stepping down as Chair, Bessent addressed concerns about Powell potentially remaining on the Fed’s Board of Governors. He described this scenario as potentially “confusing” for financial markets, suggesting a clean transition would be preferable.

The Treasury Secretary indicated the selection process might move quickly, though he provided no specific timeline for completion. This approach reflects the administration’s desire to provide market clarity while ensuring thorough candidate evaluation.

The succession process occurs during a critical period for monetary policy. The Fed navigates inflation concerns while supporting economic growth, making leadership continuity essential for market stability.