Trump: Will Appoint Another Fed Chair Once Powell’s Term Ends - Bloomberg

Trump: Will Appoint Another Fed Chair Once Powell’s Term Ends - Bloomberg

President Donald Trump has been vocal about his dissatisfaction with the Federal Reserve's monetary policy, particularly the stance of Chair Jerome Powell. With Powell's term set to end in May 2026, Trump is expected to appoint a new Fed Chair, potentially shaking up the central bank's leadership and policy direction.

Governor Adriana Kugler's resignation from the Federal Reserve, effective August 8, has further complicated the succession process. Kugler, who joined the Fed in September 2023, will return to Georgetown University as a professor. Her early departure may accelerate the timeline for selecting a replacement, giving Trump a significant opportunity to influence the Fed's direction [1].

Trump has repeatedly criticized Powell for not cutting interest rates, arguing that lower rates would stimulate the economy and reduce debt servicing costs. The president has even called for the Fed's board of governors to assume control from Powell, a move that would be unprecedented and highly contentious [2][3].

The Fed has maintained its interest rate target range at between 4.25% and 4.5% despite Trump's calls for lower rates. Two Fed officials, Christopher Waller and Michelle Bowman, dissented at the recent FOMC meeting, advocating for slight rate cuts, but the majority of the committee held firm [1].

Powell's term as chair ends in May 2026, at which point Trump can nominate a Senate-confirmed replacement. The president has not yet indicated who his preferred candidate might be, but speculation has centered around the idea that he could appoint a potential future chair to fill the slot left by Kugler's resignation [1].

The appointment of a new Fed Chair will be a significant moment in the ongoing saga between Trump and the Federal Reserve. The new Chair will face the challenge of navigating the complex relationship between the White House and the central bank, as well as the task of setting monetary policy in a rapidly changing economic landscape.

References:
[1] https://www.reuters.com/world/us/kugler-resigning-fed-opening-door-trump-appointment-2025-08-01/
[2] https://www.investmentexecutive.com/news/research-and-markets/trump-urges-fed-board-to-seize-control-from-fed-chair-powell/
[3] https://www.pbs.org/newshour/politics/trump-demands-that-federal-reserve-board-wrest-full-control-of-central-bank-from-fed-chair-powell