The Trump administration is considering using the next expected Federal Reserve Board of Governors vacancy in early 2026 for appointing a successor to central bank Chair Jerome Powell, Treasury Secretary Scott Bessent said on Monday.
"There's a seat opening up, a 14-year seat opening up in January. So we've given thought to the idea that perhaps that person would go on to become the chair when Jay Powell leaves in May, or we could appoint the new chair in May," Bessent said on Bloomberg TV. "Unfortunately, that's just a two-year seat."
Governor Adriana Kugler's term on the board expires on January 31, 2026, providing an option for President Donald Trump to name a governor for a full 14-year term who could later be promoted to chair. Powell's term as chair ends in late May 2026, while his own seat on the board only extends to January 31, 2028. Powell is not required to leave the Fed after his term as its leader lapses, but by custom most past Fed chairs have opted to leave.
The board seats held by Kugler and Powell are the only two scheduled to expire during Trump's term.
Bessent, in responding to a question whether it would cause confusion to appoint someone in January with a thought of that person ascending to chair later, appeared to confirm that at least one current board member is in the running for the job.
"Obviously there are people who are currently at the Fed who are under consideration. So why would there be confusion, if you add another candidate in January," he said.
Governor Christopher Waller, appointed by Trump during the president's first term, is reported to be among those Trump is considering for the job. Waller recently has said he would like to resume interest rate cuts as soon as the Fed's next meeting in late July. Others said to be in the running include Bessent, Trump economic adviser Kevin Hassett and former Fed Governor Kevin Warsh.
On Friday, Trump said he would not give the job to anyone who does not align with his demands for the Fed to cut rates.
