The ongoing clash between President Donald Trump and Federal Reserve Chair Jerome Powell is hitting new levels, just as fresh concerns about rising inflation grab headlines. For months, Trump has been openly critical of Powell, accusing him of holding back the U.S. economy by refusing to lower interest rates. He has even suggested firing Powell in the past, calling him “very bad for the country.”
Now, the heat has turned up even more, as Treasury Secretary Scott Bessent has publicly called on Powell to fully step down once his term as Fed Chair ends in May 2026.
Bessent Says Powell Should Make a Clean Exit
In a recent interview, Secretary Bessent made it clear that the tradition of a Fed Chair stepping down completely should be followed. He warned that if Powell stayed on the Fed’s board after finishing his term as Chair, it could confuse the markets.
There’s already chatter that Trump reportedly is considering a “shadow chair” working behind the scenes while Powell is still around.
Bessent confirmed that the formal process to find a new Fed Chair has already begun, but added that the final choice will be made on Trump’s timeline. He also assured that many good candidates are being considered, both from inside and outside the Fed.
Who’s Next in Line?
While Powell’s still got time left, the big question is, who’s going to fill his chair? According to Bessent, the hunt is officially on, and President Trump is flipping through names. Some are insiders, some are new faces.
One thing’s clear: Wall Street and Main Street are both watching, because whoever sits in that seat will set the course for everyone’s wallets.
CPI Data Surge To 2.7%
Adding to the uncertainty, the latest U.S. Consumer Price Index (CPI) report showed inflation at 2.7%, higher than expected and the first time in five months that inflation has come in above forecasts. This rise in inflation puts more pressure on the Federal Reserve.
Meanwhile, Bessent urged people not to panic over a single Consumer Price Index (CPI) report. He said it’s more important to look at the bigger picture and the long-term trend.
