The Trump administration is looking at the upcoming Federal Reserve Commission vacancy in early 2026 as an opportunity to choose a successor for central bank chairman Jerome Powell, according to Treasury Department official Scott Bescent.
“With the openings coming up in January, we thought it might be possible for someone to step up as chair after Jay Powell leaves in May,” he noted. “But, it’s a bit complicated since that’s only a two-year term.”
Governor Adriana Coogler’s term on the board is set to end on January 31, 2026, which provides the chance to nominate a new full 14-year governor who might later advance to the chairmanship.
Powell’s chairmanship concludes in late May 2026, while he can remain on the board until January 31, 2028. Although Powell could stay beyond his chair term, most past Fed chairs have traditionally left after their leadership ends.
Coogler and Powell are the only board members whose terms will expire during Trump’s current administration.
Bescent was asked whether appointing someone in January might create confusion and suggested there should at least be one board member actively working, given that this individual might later take on the chair role.
“There are already individuals on the Fed who are considering this, so adding another candidate in January shouldn’t raise any confusion,” he stated.
Gov. Christopher Waller, appointed by Trump during his first term, is also reportedly being considered for a position. Recently, Waller expressed hope to see interest rate cuts initiated in the July Fed meeting.
Other potential candidates include Bescent, Trump’s economic adviser Kevin Hassett, and former Fed Governor Kevin Wahsh.
On Friday, Trump remarked that the Fed wouldn’t hire anyone who doesn’t align with his expectations regarding interest rate cuts.
