Federal Reserve Chair Jerome Powell Speaks on Incoming Administration

By Michael S. Derby

NEW YORK (Reuters) – Federal Reserve Chair Jerome Powell said on Wednesday he is not worried about the incoming administration undermining him through nominations to Fed leadership.

While addressing speculation about a potential successor, Powell remarked, "I don’t think that’s on the table at all," during a New York Times event.

The speculation arose from Scott Bessent, nominated by President-elect Donald Trump for Treasury Secretary, who suggested naming a Fed governor perceived as a successor to Powell, whose chair term ends in May 2026. Trump has had a contentious relationship with the Fed and may seek more control over the independent central bank, which remains accountable to Congress.

Undermining Powell's authority could disturb markets and reduce public confidence in the Fed's activities.

Powell reassured attendees that his relationship with the incoming administration would be fine, stating, "There’s a set of institutional relationships between the Fed and every administration," and he expects ongoing mutual respect.

He emphasized the importance of trust when collaborating with the government, especially during crises, as they work more closely under the law.