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Trump plans to change at the Fed top: Who comes to Powell?
US President Trump plans to appoint Jerome Powell's successor by September 2025. Analyzes have an impact on monetary policy.
Trump plans to change at the Fed top: Who comes to Powell?
President Donald Trump plans to select a successor for the current central bank boss Jerome Powell in September or October 2025. Powell, whose term of office runs until May 2026, has repeatedly committed Trump in recent years, especially because of his decision not to reduce interest rates. Trump described Powell as "terrible" and threatened to dismiss. However, it is unclear whether he actually has the authority to fire Powell. According to analysts, this debate about a possible successor could also influence monetary policy before the end of Powell's term of office, as vienna.at.
Lately, the US dollar has fallen to the lowest level compared to the euro for three and a half years, which reflects the uncertainty about the future leadership of the Federal Reserve. Analyst Kieran Williams said that early appointment of a successor could endanger the independence of the Fed and weaken its credibility. Trump already has three or four potential successors in view, including
possible successor candidates
- Kevin Hassett, economic advisor of the White House
- Kevin Warsh, former Fed director
- Scott Bessent, Finance Minister
- Christopher Waller, incumbent FED directorate member, who thinks about an interest reduction
The names of these candidates were also mentioned during the NATO summit in the Haag of Trump. During his statements there it became clear that the discussion about the successor was not only an internal matter, but could also influence the trust of the markets in the US economy. Analysts agree that the possibility of a interest rate reduction, as being considered by Waller, would be positive for the monetary policy intended by Trump, as from onvista.de highlighted.
The development of the key interest rate of the US Central Bank, which is of central importance for the economy, has changed significantly in recent years. A current analysis of key interest rate development from the Federal Reserve shows that interest rates from 2001 to 2025 were subject to fluctuations that have a strong influence on both national and international markets. This information can be viewed at Statista.com.