Federal Reserve Chair Jerome Powell will complete his term until May 2026 according to current indications despite President Trump’s increasing criticism and public demands for immediate interest rate reductions.
The Federal Reserve Chair Jerome Powell will testify on Capitol Hill for two days while market observers question his position. The Supreme Court decision has confirmed the Federal Reserve’s independence which makes it impossible for Trump to remove Powell from his position due to policy differences.
The proposal to name a “shadow” chair by Trump remains speculative because it would generate market uncertainty without granting actual authority before Powell’s term ends. Evercore ISI’s Krishna Guha stated that premature selection of a successor would damage credibility and create challenges during future Senate confirmation processes.
The Federal Reserve conducts its assessment of economic growth and inflation while considering the effects of tariffs and geopolitical tensions. Most policymakers maintain their reluctance to reduce interest rates because the economic outlook remains unclear despite Trump’s repeated demands for rate cuts.
The Federal Reserve includes potential oil price risks from U.S. bombing in Iran and Middle East conflict in its forecasting process despite stable current oil prices. Before making any monetary policy changes Powell has stressed the necessity of obtaining clear information.
