Washington, United States – As President-elect Donald Trump prepares to take office, the question remains whether he will allow Federal Reserve Chair Jerome Powell to continue serving his term until May 2026. Despite previous controversies and disagreements between the two, indications suggest that Powell may remain in his position as Trump’s economic team supports his leadership in guiding the central bank’s interest rate policies.

Throughout his tenure, Powell faced scrutiny over his job security, with speculation arising on whether Trump would dismiss him before the end of his term. However, Powell’s staunch response during a recent press conference reiterated his commitment to upholding his position, stating that he believes Trump lacks the authority to terminate him.

Despite Trump’s past criticisms and threats toward Powell, the President-elect’s economic advisor hinted at a potential extension of Powell’s term. Notably, Powell’s political background and experience as a private equity executive have shaped his leadership at the Federal Reserve since his appointment in 2018.

Amidst rumors of potential successors, such as Gary Cohn, sources close to the transition have cited other candidates like Kevin Warsh and Kevin Hassett. These individuals bring a mix of experience from the central bank’s governance and economic advisory roles during Trump’s first term.

Regarding Trump’s previous attempts to challenge Powell’s decisions on interest rates, it is important to note the complexities involved in removing a Fed chair once confirmed. Powell’s influence at Federal Open Market Committee meetings also extends to a group of 11 other Fed officials who collectively determine interest rate adjustments.

Ultimately, the future of the Federal Reserve’s leadership under Powell’s guidance remains uncertain as Trump’s administration transitions. Despite past tensions, Powell’s dedication to his role and commitment to the central bank’s mission may solidify his position until the completion of his term in 2026. As the dynamics between the President-elect and Powell continue to evolve, the financial landscape awaits the outcomes of their interactions and potential policy implications.