Fed Faces Transition as Powell Prepares to Exit in 2026

• Powell to leave Fed chair role in 2026 but remain on the Board of Governors.
• Crypto-friendly candidates emerge as potential successors with varying policy stances.
• Governor Lisa Cook faces political pressure as Trump demands her resignation.

Jerome Powell’s departure as Federal Reserve Chair in 2026 is setting the stage for a potential pro-crypto shift at the top of U.S. monetary policy, with market observers flagging BlackRock executive Rick Rieder as a leading candidate to succeed him.

While his chairmanship will end, Powell is expected to remain on the Federal Reserve’s Board of Governors, continuing his involvement in monetary policy beyond his tenure as chair. His departure sets the stage for a leadership transition that will shape U.S. economic policy heading into the 2030s.

Who Are the Crypto-Friendly Candidates?

Several potential policymakers have shown a greater openness to digital assets than Powell. Rieder’s potential candidacy carries significant weight, as he has previously stated that Bitcoin could be part of long-term asset allocation strategies, and his firm, BlackRock, oversees the largest Bitcoin and Ethereum ETFs.

Within the Fed, Governor Christopher Waller has described crypto as a neutral tool, while Vice Chair Michelle Bowman has suggested staff should be permitted to hold crypto to better understand the technology.

How Does This Compare to Powell’s Cautious Stance?

This marks a potential shift from Powell’s historically cautious approach. While Powell acknowledged in June that cryptocurrencies were becoming more mainstream, comparing Bitcoin to gold, he has consistently urged banks and regulators to proceed carefully. 

His departure from the chairmanship, though he will remain a Governor, ends a policy era defined by post-pandemic recovery and sets the stage for new leadership as many anticipate Fed Governor Foresees Continued Pause With Interest Rate Cuts in 2024.

What’s Driving the Political Pressure on the Fed?

The leadership discussion comes as Governor Lisa Cook faces mounting scrutiny. This week, President Donald Trump publicly called for her resignation, citing questions raised over mortgage records. Trump linked his remarks to a letter from Federal Housing Finance Agency head Bill Pulte, who accused Cook of forging documents to secure favorable loan terms.

Related: Trump Blasts Fed Chair Powell, Threatens Lawsuit Over “Horrible” Renovation Job

Cook rejected the calls, stating she would not be pressured to step down and pledged to provide accurate information regarding her financial history. Reports also indicate that Trump is considering ways to remove her from the Board, intensifying the political focus on the central bank as Powell’s final years as chair begin.