Fed Chair Jerome Powell Successor Process Has Started: Scott Bessent

U.S. Treasury Secretary Scott Bessent has confirmed that a process to find a successor to Federal Reserve Chair Jerome Powell has begun. This comes amid political pressures and ongoing debates regarding U.S. monetary policy, alongside speculation in financial markets about Powell’s future.

Jerome Powell Successor Process Initiated

In a recent interview with Bloomberg Television, U.S. Treasury Secretary Scott Bessent stated that the process to select a potential successor to Federal Reserve Chair Jerome Powell is officially underway. Bessent emphasized that there are “a lot of great candidates” for the role, signaling that the search will include individuals both within and outside of the Federal Reserve system. “We’ll see how rapidly it progresses,” Bessent added, indicating that the process may move quickly.

Powell’s current term as the head of the U.S. central bank is set to end in May 2026. However, speculation surrounding his future has grown, particularly in the wake of ongoing political pressures and legal scrutiny.

The focus on Powell’s possible replacement follows repeated calls from President Donald Trump, who has urged Powell to resign due to his monetary policy decisions. Trump has expressed dissatisfaction with Powell’s handling of interest rates, which he believes are too high and detrimental to economic growth.

Speculation Around Powell’s Resignation

In addition to the political pressure, Powell is also being investigated in connection with his testimony before the Senate. These inquiries have contributed to his leadership at the Federal Reserve, which is getting uncertain. Moreover, the personal pressure exerted by Trump has led to the speculation that Powell may opt to quit his position before the officially-scheduled end of his term in May 2026.

This increasing attention and scrutiny has resulted in a delicate situation where the future of Powell at the Fed is increasingly unclear. Powell having a shadow position of Fed chair has also been of concern to some people who think that it might cause chaos in the market once his term as the Fed chair is over and he is still in the Federal Reserve Board of Governors.

Treasury Secretary Scott Bessent expressed appreciation of these apprehensions, noting that it would probably be “confusing” to the markets to have Powell continue on as a board member following his resignation as chairman. Bessent remarked,

“I think it’d be very confusing for the market for a former Fed chair to stay on also.”

As the process to find Powell’s successor moves forward, several individuals have emerged as potential candidates. Polymarket has been tracking the odds of who might replace Powell, and as of now, Kevin Warsh, former Federal Reserve governor, leads the pack with a 20% chance, followed closely by Kevin Hassett and Scott Bessent, both with 18% chances. Ending the list, Chris Waller, a current Federal Reserve governor, has a smaller 6% chance, according to the platform’s data.