Who Will Replace Jerome Powell? Federal Reserve Chair Transition 2026

The US Federal Reserve enters 2026 at a critical juncture, with a major leadership transition and a Supreme Court case that could reshape the boundaries of central bank independence.

Federal Reserve Chair Jerome Powell’s second term is set to end on May 15, 2026, prompting the White House to step up efforts to appoint a successor. President Donald Trump is expected to announce his nominee soon, with reported frontrunners including Kevin Hassett, Kevin Warsh, and current Fed Governors Christopher Waller and Michelle Bowman, along with Rick Rieder of BlackRock.

Although Powell’s term as Chair expires in May, his tenure as a Fed Governor runs until January 31, 2028. He has not indicated whether he will step down entirely or remain on the Federal Open Market Committee (FOMC).

Meanwhile, the US Supreme Court is scheduled to hear oral arguments on January 21, 2026, in a case involving President Trump’s attempt to dismiss Fed Governor Lisa Cook. The ruling, expected by mid-2026, could determine whether a President can remove Fed officials over policy disagreements.

The transition comes as inflation cools toward the Fed’s 2 percent target, while the US unemployment rate has risen to 4.6 percent, keeping markets alert to possible shifts in monetary policy.