Pressure Mounts on Jerome Powell as Trump Eyes Potential Replacements
Washington D.C. – The future of Jerome Powell as Chairman of the Federal Reserve is increasingly uncertain, with growing pressure from Donald Trump to lower interest rates and speculation mounting over potential successors. As Powell’s current term nears its end in May 2026, questions are arising whether he will serve the entirety of it.
Recent economic data is fueling the debate. A less-than-robust August employment report has intensified calls for a shift in monetary policy, with some within the fed advocating for a more proactive approach. Federal Reserve Vice Chair michelle Bowman, appointed by Trump during his first term, recently stated the need to lower rates “three times in the coming months” to safeguard U.S. employment,suggesting cuts at each of the remaining fed meetings in 2025. Bowman cited “signs of fragility” in the job market as justification for her position.
The employment figures sparked a strong reaction from Trump, who publicly criticized the economist overseeing their publication, Erika mcentarfer, alleging manipulation of the data for political purposes to benefit Democratic candidate Kamala Harris.Despite the pressure,the Federal Reserve has yet to adjust interest rates,citing continued uncertainty regarding the impact of ongoing trade policies.
Trump has indicated he is considering four candidates to potentially replace Powell. While he has not publicly named them, he confirmed that current Treasury Secretary Scott Bessent has expressed a preference to remain in his current role after being asked about the possibility. Othre potential contenders,according to CNBC,include former Fed administrator Kevin Warsh and Kevin Hassett,a key economic advisor to Trump.
