Trump names Powell's successor, when does the FED Chairman's term end? How is the Chairman of the Federal Reserve (FED) selected?

U.S. President Trump has recently once again attacked The Federal Reserve (FED) Chairman Powell, clearly stating that he is considering three to four potential candidates to take over this key position. Although Powell's term has not yet expired, Trump's remarks have sparked public interest in whether the future leadership and policy direction of the Federal Reserve will significantly change.

Trump strikes again: Powell "performed too poorly"

President Trump expressed his "extreme dissatisfaction" with Powell's performance during a media briefing at the White House this week, calling him "a very bad chairman" and stating that he is "considering three to four candidates." When asked if he was in the process of interviews or appointments, Trump firmly stated, "I know which three or four people I am going to choose from."

This is not the first time Trump has criticized Powell. Since taking office, he has publicly expressed dissatisfaction with the Federal Reserve's (FED) reluctance to lower interest rates multiple times, and he even threatened to consider replacing the chairman.

Heir list exposed: Trump’s trusted circle members surface.

According to media reports, the current potential successors considered by Trump include:

Kevin Warsh: Former Federal Reserve (FED) director, advocates hawkish policies, with a Wall Street background.

Kevin Hassett: Former Chairman of the Council of Economic Advisers, a member of the Trump administration.

Christopher Waller: Current member of the Federal Reserve (FED) Board, with extensive experience in monetary policy.

Scott Bessent: Current Secretary of the Treasury, closely related to Trump.

When asked whether he had discussed Powell's succession with the President, Hassett did not respond directly, only stating: "The President will choose someone he trusts, and that person will not be Powell."

Can Trump directly replace the chairman of The Federal Reserve (FED)?

Although Trump is dissatisfied with Powell for the first time, according to the institutional design, the president cannot arbitrarily replace the chairman of The Federal Reserve (FED) unless there is serious misconduct or negligence.

The independence of The Federal Reserve (FED) is at the core of the stability of the U.S. financial system. Once the chairman is confirmed by the Senate, their position is legally protected, and they cannot be removed mid-term due to a presidential change or policy disagreements.

However, Trump's frequent criticisms and personnel arrangements have raised concerns that he might shape the direction of monetary policy in advance through a "shadow chairman" before Powell's term expires.

How is the Chairman of the Federal Reserve (FED) appointed?

In simple terms, the way the chairman of The Federal Reserve (FED) is selected is as follows:

Presidential Nomination: The President may choose from the members of the Federal Reserve Board or may nominate new individuals to join the Board as candidates for Chair.

The Senate confirms: After nomination, it must pass through a hearing and voting process to be approved by a majority.

Term and Structure:

The term of the chairman is 4 years.

The term of office for a member of the Federal Reserve Board lasts for 14 years, and even if they no longer serve as chair, they can continue to serve as a member until the end of their term.

Reappointment: The president may nominate the current chairman for reappointment, which requires confirmation by the Senate.

These systems ensure that The Federal Reserve (FED) can adjust monetary policy in a relatively stable environment, free from short-term political interference.

How much longer does Powell have in his term?

As of June 26, 2025, Jerome Powell's second term as Chairman of The Federal Reserve (FED) will expire on May 15, 2026, leaving approximately 11 months remaining.

However, his term as a member of the Federal Reserve (FED) Board of Governors will last until January 31, 2028. Therefore, even if he no longer serves as chairman, he may continue to remain on the board.

Position Term Start Term End Chairman (2nd Term) May 23, 2022 May 15, 2026 Federal Reserve Governor May 25, 2012 January 31, 2028

If Trump proposes a successor in the coming months, the Senate confirmation process will likely be completed before Powell's term ends.

Powell's latest statement: remains vigilant against inflation

At the same time that Trump made comments, Powell also warned during a congressional hearing that the recently added tariffs could drive up summer inflation. He stated, "We believe inflation will rise again in the short term, so it is not yet the time to cut interest rates."

This statement shows a clear divergence from the market's expectations of interest rate cuts by The Federal Reserve (FED) within the year, and it illustrates its firm stance on maintaining price stability.

The Federal Reserve (FED) personnel battle starts early?

Although there is still nearly a year until Powell's term ends, President Trump has clearly begun to lay out a "replacement" strategy, indicating that the future direction of the Federal Reserve will be more aligned with his economic policy positions. From the list of candidates, the market may also anticipate that the Federal Reserve will lean more towards a dovish stance in the future. This struggle over monetary policy and personnel power is bound to become the focus of global investors and Washington observers in the coming months.

In this article, Trump names Powell's successor. When does the term of the FED chairman end? How is the chairman of The Federal Reserve (FED) chosen? First appeared in Chain News ABMedia.