Trump Escalates Fed Pressure While Treasury Secretary Maps Out Powell Replacement Strategy

Treasury Secretary Scott Bessent outlined the Trump administration’s strategy for replacing Federal Reserve Chairman Jerome Powell, whose term ends in May 2025. In a Bloomberg interview, Bessent revealed that current Fed officials are already under consideration for the role.

The administration has two main options: appointing someone to fill Fed governor Adriana Kugler’s departing seat in January who would then become chair in May, or waiting to appoint a new chair directly in May (though this would only be a two-year term).

Meanwhile, President Trump intensified his campaign for lower interest rates, posting a note on Truth Social accusing Powell of being “Too Late” and costing “the USA a fortune.” Trump also expanded his criticism to the entire Federal Reserve board, saying they’re “equally to blame” for current monetary policy.