Fed Shake-Up: Scott Bessent Reveals Hunt for Jerome Powell’s Replacement Has Begun

The Federal Reserve is gearing up for a leadership overhaul—and Wall Street is already placing bets.

KeyHedge founder Scott Bessent dropped the bombshell today: The search for Jerome Powell’s successor is officially underway. No word yet on whether candidates will promise to print money slower than a congested Ethereum network.

Why it matters: The next Fed chair could dictate monetary policy through 2030—just as crypto threatens to rewrite the rulebook on centralized finance. Will they embrace innovation or double down on legacy systems? The market’s watching.

Between the lines: Bessent’s leak suggests backroom negotiations have started. Classic DC—where ‘transparent processes’ are as rare as a Bitcoin maximalist at a CBDC conference.

The bottom line: When the musical chairs stop, we’ll either get a forward-thinking disruptor… or another bureaucrat who thinks ‘blockchain’ is a Peloton accessory.

TLDR

• The formal process to find a replacement for Jerome Powell as Federal Reserve Chair has officially started.
• Treasury Secretary Scott Bessent confirmed that the White House is actively reviewing candidates for the position.
• Jerome Powell’s current term ends in May 2026 but discussions suggest he could leave earlier.
• Leading candidates include Scott Bessent, Kevin Hassett, Michelle Bowman, and Kevin Warsh.
• President Donald Trump will decide the pace and outcome of the selection process.

According to Treasury Secretary Scott Bessent, a formal process to identify a replacement for Jerome Powell has officially started. The search comes amid ongoing political pressure and a critical phase for the U.S. economic outlook. Market participants are tracking the situation as discussions advance ahead of Powell’s scheduled May 2026 exit.

Process Begins for Fed Chair Replacement

Scott Bessent confirmed that the selection process for Jerome Powell’s successor is already in motion under President Donald Trump’s direction. While Powell’s term extends into 2026, efforts to replace him have accelerated due to rising dissatisfaction with his policies. This MOVE could bring significant changes to monetary policy leadership and direction.

Candidates are emerging from both inside and outside the Federal Reserve system, adding depth to the replacement pool. Bessent, a Wall Street figure with economic advisory experience, is considered a key contender for the position. However, the timeline for a final decision will depend entirely on the President’s schedule and priorities.

Jerome Powell, who has led the Federal Reserve through complex economic phases, now faces early departure speculation. Though his policy direction has received support from some sectors, political figures have expressed strong disagreement. The current administration remains focused on securing leadership that aligns with its economic goals.

Key Candidates for Jerome Powell’s Role

In addition to Bessent, several high-profile names are under consideration to replace Jerome Powell at the Federal Reserve. These include Kevin Hassett, known for supporting tax reductions and economic deregulation, and Michelle Bowman, an advocate for lighter bank regulations. Both candidates have gained attention for their consistent policy views and financial experience.

Another potential successor is Kevin Warsh, who previously served on the Federal Reserve Board of Governors. Warsh has consistently criticized Jerome Powell’s inflation strategy and favors lower interest rates. Analysts suggest he may gain support from factions seeking quicker rate adjustments and business-friendly approaches.

Each candidate brings a different economic philosophy, which could reshape future interest rate decisions and regulatory frameworks. While no final choice has been made, the WHITE House aims to find a candidate who reflects its economic vision. The process is expected to intensify in the coming months as interviews begin.

Jerome Powell’s premature exit could impact financial markets, especially during this post-pandemic recovery period marked by global uncertainty. Some analysts believe his removal might trigger short-term volatility, though others expect stabilization once a successor is confirmed. The Federal Reserve’s independence remains central to ongoing discussions.