Powell silence on his future complicates Trump Fed chair search

A raft of new policies, including a slew of tariffs, have prompted many voters to assign credit or blame to Trump

- Bloomberg

As US President Donald Trump and his advisors begin weighing replacements for Federal Reserve Chair Jerome Powell, they're running into one significant complication: It's not clear that Powell will leave the US central bank next year.

The Fed chief has repeatedly declined to say whether he will step down when his four-year term as chair expires in May, or remain on the Fed board—something he could technically do until his tenure as a governor expires in January 2028.

The prospect of Powell remaining at the central bank has prompted administration officials to begin planning for multiple scenarios for his replacement, as Trump seeks a chair who will support his economic agenda.

The president said Tuesday he has "two or three top choices" to potentially succeed Powell, but declined to name them.

In recent weeks, Trump's advisors have even discussed with him the possibility that Scott Bessent could simultaneously serve as Treasury secretary and Fed chair, according to people familiar with the matter.

Such a move would be unprecedented since the two roles were separated in 1935, in legislation aimed at giving the Fed a measure of independence.

"Any reporting suggesting that the President is considering having Secretary Bessent serve as both Treasury Secretary and Federal Reserve Chairman concurrently is absolutely fake news," a White House official said.

A Treasury spokesperson pointed to Bessent's comments earlier this week on his potential candidacy. "I will do what the president wants, but I think I have the best job in DC," he said on Bloomberg TV.