Powell’s Term Ends May 15, Raising Succession Stakes Jerome Powell’s statutory term as Federal Reserve chair expires on May 15, 2026, and he could remain on the Fed’s Board of Governors as a voting member, an unusual step that would extend his influence. The impending vacancy intensifies pressure on the White House to name a successor who can navigate political friction and market expectations. The deadline has already spurred intense speculation across the political and financial spectrum. [1][2][3]

Trump Suggests Hassett Remain in Current Role President Donald Trump told Kevin Hassett he prefers the economist stay at the National Economic Council rather than move to the Fed chairmanship. The comment, made at a White House event, unsettles the administration’s shortlist and pushes analysts to reassess the odds of Hassett’s nomination. Market participants re‑priced the likelihood of Hassett becoming chair after the remark. [1][2]

Warsh Gains Momentum Backed by DOJ Subpoenas Former Fed governor Kevin Warsh re‑emerged as the front‑runner, buoyed by recent Justice Department subpoenas targeting the Federal Reserve. Analysts argue the subpoenas, which Powell linked to pressure over rate cuts, make Warsh a more confirmable, less White House‑aligned choice. BetOnline set Warsh’s odds at even money, the shortest among the field, while Evercore ISI noted his easier Senate path. [1][3]

Waller and Other Candidates Offer Independent Alternatives Current Fed governor Christopher Waller, who met with Trump, is praised for his institutional distance and is described as the “more sensible” pick by market observers. Waller’s odds sit at 8/1, reflecting lower perceived support than Warsh or Hassett but higher than peripheral names. Additional names floated include BlackRock’s Rick Reider and Treasury Secretary Scott Bessent, indicating a crowded shortlist. [2][3]