US Lawmaker Claims Jerome Powell Will Be Sacked: The Search for a New Fed Chair Is On

• A US lawmaker confirmed the imminent removal of Jerome Powell as the Fed’s chair.
• Scott Bessent says the search for Powell’s replacement has officially begun.
• The Trump administration always had its reservations about Powell’s Fed leadership.

Speculation about the removal of Federal Reserve Chair Jerome Powell surged after a US lawmaker representing Florida confirmed that his removal was imminent. 

Representative Anna Paulina Luna of Florida made the statement in her latest post on the social media platform X. Her comments come as heated discussions are happening within the Donald Trump administration about a leadership change at one of the world’s most powerful central banks.

The Search for a New Fed Chair Is On

Adding to the pressure, U.S. Treasury Secretary Scott Bessent noted that the search for Powell’s replacement has officially begun. According to Bessent, a formal process is already underway, and there are several candidates both inside and outside the Federal Reserve for the job, even though Powell’s current term does not expire until 2026.

Related: Trump’s Search to Replace Jerome Powell Is Reportedly Down to These ‘Two Kevins’

Bessent also suggested that Powell should consider leaving the Fed completely when his time as chair is up. The Treasury Secretary believes the move would avoid confusion in the system and help maintain market stability. Bessent stressed that the talk of a new Fed chair is already causing enough confusion, and Powell staying on the Fed’s Board of Governors after his time as chair is over could be even more confusing for the market.

Wall Street’s Warning: Don’t Interfere with the Fed

In the meantime, the CEO of JP Morgan, Jamie Dimon, has been campaigning for the Fed’s independence. Dimon warned that “playing around” with the central bank can have severe consequences, a view that is in sharp contrast with the Trump administration’s aims. He thinks the current chair should be allowed to finish his term, which ends in 2026.

Related: Commerce Secretary Howard Lutnick Uses Tariff ‘Windfall’ to Pressure Jerome Powell

The Trump administration has had reservations about Powell’s leadership of the Federal Reserve for a long time and has not hidden its desire for an alternative. The administration would prefer a Fed chair who is more aligned with its preference for lower interest rates and a more accommodative stance. 

Trump himself has publicly demanded Powell’s resignation, saying that his presence at the helm of the apex bank is “very bad for the country.” Trump openly criticized Powell for not cutting interest rates as he desired.