President-elect Donald Trump is expected to allow Federal Reserve Chair Jerome Powell to continue serving until his term expires in May 2026. This decision is based on information from a senior adviser to Trump who chose to remain anonymous. While there is a possibility that Trump may change his mind, his current stance, along with the support of his economic team, is in favor of retaining Powell as the head of the central bank, especially as it pursues a policy of reducing interest rates.
Powell, a Republican and former private equity executive, was appointed by Trump to lead the Federal Reserve in 2018. President Joe Biden later reappointed him for a second four-year term. Despite speculation that Gary Cohn, a former economic policy director under Trump, may be interested in the position, his past resignation over Trump's steel tariffs makes it unlikely for him to be considered.
Other potential candidates mentioned in connection with the Trump transition include Kevin Warsh, who previously served on the bank's board of governors and advised Trump during his initial term, as well as Kevin Hassett, Trump's former chief economist.
In a statement made before Trump's election, Powell affirmed his commitment to serving out the remainder of his term. This news indicates a level of continuity in leadership at the Federal Reserve, with Powell likely to remain at the helm under the incoming administration.
