Trump’s Search for Powell’s Successor Broadens, Yellen Considered
President Trump is keeping his options open regarding potential successors for Federal Reserve Chairman Jerome Powell, with Treasury Secretary Scott Bessent indicating that Janet Yellen has come into consideration.
Powell’s tenure at the helm of the U.S. central bank concludes in May 2026, and the Trump administration is already conducting interviews with various candidates, extending their search considerably, as noted by Bessent during an appearance on Fox Business with Larry Kudlow.
“The president has a very open mind,” Bessent stated in response to inquiries about Trump’s preferences for Powell’s replacement. He added, “He has even contemplated reappointing Janet Yellen, so we want to gather insights from everyone involved.”
Bessent emphasized that the decision-making process does not stem from ideological biases but aims to cater to economic effectiveness and the welfare of American citizens. “When communicating with candidates, I consider three key aspects: monetary policy, regulatory frameworks, and their capability to manage and reform the organization, particularly as it has become considerably bloated, which jeopardizes its monetary independence,” he explained.
Janet Yellen, age 79, has previously led the Federal Reserve from February 2014 to February 2018 during Barack Obama’s presidency, and she remained in position for a portion of Trump’s initial term. Additionally, she served as treasury secretary for the entirety of President Biden’s administration.
Recently, Yellen criticized Trump’s decision to dismiss Erika McEntarfer, the former head of the Bureau of Labor Statistics, alleging that the agency mismanaged employment data. In a recent interview, she remarked, “This type of action is reminiscent of practices found in a banana republic.”
As treasury secretary, Yellen has vocally defended Biden’s approach toward the inflation-stricken economy, while pointing out flaws in Trump-era policies. During a speech to the Economic Club of Chicago in January 2024, she stated, “Our economic agenda is far from over,” and remarked on the decades-long decline of infrastructure, suggesting, “Under the Trump administration, any proposals for improvement were treated as a joke.”
She further contended that measures such as the Tax Cuts and Jobs Act of the Trump administration contributed to a $2 trillion increase in the deficit with minimal benefits to investment.
Currently, Trump is reportedly evaluating about ten candidates for Powell’s position slated for next year. Among those under consideration are former St. Louis Fed President James Bullard, ex-economic advisor to President George W. Bush Marc Sumerlin, National Economic Council director Kevin Hassett, former Fed governor Kevin Warsh, and current Fed governor Christopher Waller, as per the Wall Street Journal.
Over recent months, Trump has publicly criticized Powell for his refusal to lower interest rates, coining the term "Too Late Powell" in reference to him. On Tuesday, Trump threatened legal action against Powell, accusing him of managing a $2.5 billion renovation project at the Federal Reserve headquarters ineffectively, alleging it should have been completed for $50 million.
Last week, Trump appointed ally Stephen Miran, a member of his Council of Economic Advisers, to the Fed Board, replacing Fed Governor Adriana Kugler, who unexpectedly resigned.
Bessent noted that with the anticipated change in chairmanship, Trump will secure a majority on the board. “It’s important to recognize that we have two vacancies to fill,” he told Kudlow. “There’s the chair position and another appointment, which will grant President Trump majority control over the board.”
The White House has yet to respond to requests for further comment.
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