Who Will Lead the Federal Reserve Next if Jerome Powell Leaves?

With the Federal Reserve keeping the interest rate unchanged in June, Jerome Powell is getting criticism. Donald Trump has already threatened to fire him and called him names on multiple occasions, especially after pointing out the need for rate cuts due to the import tariff and other economic factors. Even the EU has implemented 10 rate cuts during this period, resulting in Trump calling Powell ‘too late’ and prompting speculation about his replacement. Who will lead the Fed next? Let’s discuss.

Top Candidates to Replace Jerome Powell if He Leaves

Whether Trump fires Jerome Powell or he leaves once the term ends, the hunt for the new Fed Chair has already begun. According to a Reuters report, the top candidates are Kevin Warsh, Kevin Hassett, Christopher Wallace, and Scott Bessent.

In this, only Hassett and Bessent are known to be crypto-friendly and align with the rate cut and monetary policies.  Notably, Treasury Secretary nominee Scott Bessent is the top candidate for Trump.

Other potential names include:

1. David Malpass (former World Bank President)
2. Michelle Bowman (ex-member of the Federal Reserve Board)
3. Howard Lutnick (former Secretary of Commerce)
4. Arthur Laffer (American economist)
5. Elon Musk (Owner of Tesla, SpaceX, X, and former leader of D.O.G.E.)
6. Larry Kudlow (News analyst and economist)
7. Ron Paul (ex-U.S. representative for Texas) and many other

Although Donald Trump, as the US president, has the utmost control and power, firing Jerome Powell may not be one of them. Recently, the Supreme Court revealed that the relationship between the President and the Fed is different from that of other independent agencies. As a result, Powell is potentially safe from Trump’s removal attempts.

However, this does not change Trump’s issues with Powell, as he called his rate decision too late before the Capitol Hill testaments. After the unchanged interest rates, Powell again signals no immediate rate cut. Now the eyes are on the Fed Chair’s term end, which is in May 2026.

Who Will Lead the Federal Reserve Next?

The next Federal Reserve chairman is still under consideration, and no official announcement has been made. However, the Polymarket data hint at who could be next based on investors’ betting.

According to that, the top five candidates are Kevin Warsh with 23% odds, Chris Waller (21%), Kevin Hasset (17%), Scott Bessent (11%), and Judy Selton (10%).

Although the term would end in May 2026, there’s a certain possibility that it may come earlier. However, there are also bets on the possibility that there won’t be any announcement this year, with a probability is 16%.