Overview

• President Trump said he will soon nominate a successor to Jerome Powell despite Powell’s term extending until May 2026.
• An early nomination risks creating a ‘shadow’ Fed chair whose policy outlook could clash with the sitting chair and confuse markets.
• Economists caution that any nominee seen as politically beholden to the president would undermine the central bank’s credibility and stability.
• Online prediction markets list top contenders as Kevin Hassett, Kevin Warsh, Judy Shelton, Scott Bessent and current governor Christopher Waller.
• The eventual nominee will require U.S. Senate confirmation, a process that could stretch for months and prolong policy uncertainty.