As U.S. President Donald Trump and his advisers begin weighing replacements for Federal Reserve Chair Jerome Powell, they¡¯re running into one significant complication: It¡¯s not clear that Powell will leave the U.S. central bank next year.
The Fed chief has repeatedly declined to say whether he will step down when his four-year term as chair expires in May, or remain on the Fed board ¡ª something he could technically do until his tenure as a governor expires in January 2028. The prospect of Powell remaining at the central bank has prompted administration officials to begin planning for multiple scenarios for his replacement, as Trump seeks a chair who will support his economic agenda.
The president said Tuesday he has "two or three top choices¡± to potentially succeed Powell, but declined to name them. In recent weeks, Trump¡¯s advisers have even discussed with him the possibility that Scott Bessent could simultaneously serve as Treasury secretary and Fed chair, according to people familiar with the matter. Such a move would be unprecedented since the two roles were separated in 1935, in legislation aimed at giving the Fed a measure of independence.
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