Overview

• Reports from the Wall Street Journal indicate Trump may nominate a Fed chair successor as early as September or October, months before Powell’s term expires in May 2026.
• Potential candidates include former Fed governor Kevin Warsh, NEC director Kevin Hassett, Treasury official Scott Bessent, former World Bank head David Malpass and Fed governor Christopher Waller.
• Speculation over an early succession prompted a sell‐off in the dollar, a drop in 10-year U.S. Treasury yields and a rally in the euro.
• Economists warn that naming a shadow successor could render Powell a lame-duck chair and erode the Federal Reserve’s long-standing independence.
• Legal experts note that U.S. law only allows removal of a Fed chair for cause, making any attempt to oust Powell before his term ends legally contentious.