Trump looks for Powell successor, no official candidates yet

President Trump is now vying for changing the bureaucratic makeup of the Federal Reserve, eyeing rate cuts and wanting to stray away from the Powell-era policy of "wait and see."

Fed chair Jerome Powell.

The Federal Reserve, led by a very cautious Jerome Powell first nominated for his position of chair by Donald Trump in 2018, has been very reluctant to cut rates over the past year. This year alone, interest rates stood between 4.25-4.5% with the only rate cuts being very minor.

This month, Jerome Powell announced that the Fed would not cut rates in the near future, citing concerns regarding tariffs and possible mounting inflation levels as a result. Many labeled this policy as "wait and see," where the Fed would keep rates steady until the near perfect economic circumstances come into fruition. For Powell, that moment is not anytime soon.

Many firms have still held their 2-rate-cut predictions the same, but with a sizeable number of firms also predicting a mere single rate cut in 2025.

Some Fed officials have hinted at a possible rate cut in July, like Chris Waller, a member of the Federal Reserve Board of Governors. However, with Powell being in charge of the ultimate decision, it is not likely for a rate cut as early as July to happen.

"Powell's term is up in May, and he could be replaced by someone super friendly to the administration," stated Jack Ablin, the chief investment officer of Cresset Capital.

Ablin's statement is far from wrong. In fact, President Trump is hoping to use the Fed's vacancy in 2026 to appoint a pro-MAGA chair who would implement far more rate cuts than the incumbent Powell.

One of the top candidates in speculation has been Scott Bessent, the current Secretary of the Treasury. Bessent has much experience from working in hedge funds and has been a staunch Trump ally in the fiscal treasury, defending Trump's tariffs alongside Sec. of Commerce Lutnick.

Whoever the candidate may be, it is likely that they will be a very staunch ally of Trump like Bessent and Lutnick. "The administration is now laying the groundwork – including with the 'One, Big, Beautiful Bill' –- to turbocharge economic, job, and investment growth, and it's high time for monetary policy to complement this agenda and support America's economic resurgence," White House spokesperson Kush Desai said.