Florida Congresswoman Anna Paulina Luna on Tuesday said that Federal Reserve Chair Jerome Powell’s dismissal is imminent. The explosive claim comes amid mounting pressure from the Trump administration and ongoing speculation about a leadership change at one of the world’s most powerful central banks.The search for Powell’s replacement is now officially underway, according to US treasury secretary Scott Bessent. Bessent confirmed that “there’s a formal process that’s already starting” to find the next Federal Reserve chair, whose term expires in 2026. “There are a lot of good candidates inside and outside the Federal Reserve,” he was quoted as saying to Bloomberg.Bessent also suggested that Powell should consider stepping down from the Fed entirely once his chairmanship ends to avoid confusion and maintain market stability. “Traditionally, the Fed chair also steps down as a governor,” Bessent said. “There’s been a lot of talk of a shadow Fed chair causing confusion in advance of his or her nomination. And I can tell you, I think it’d be very confusing for the market for a former Fed chair to stay on also,” he added.
JPMorgan Chase CEO pushes back
However, JPMorgan Chase CEO Jamie Dimon appeared to push back against these ideas, stressing the importance of the Fed’s independence. After an earnings call, Dimon said, “I think the independence of the Fed is absolutely critical.” As reported by The Wall Street Journal, Dimon warned, “Playing around with the Fed can have adverse consequences, the absolute opposite of what you might be hoping for.”The Trump administration has been vocal in its desire for a Fed leader who favours lower interest rates and a more accommodative monetary policy. US President Donald Trump has publicly called for Powell to “resign immediately,” blaming him for not cutting interest rates aggressively enough and branding him “very bad for the country.” Trump argued, ‘“Every point [of interest] costs us $360 billion,” insisting rates should fall below 1%.
Powell’s resignation ‘would be the right decision for America’
Beyond verbal criticism, the White House, through Office of Management and Budget Director Russell Vought, has accused Powell of “gross mismanagement” and extravagance over a $2.5 billion renovation of the Fed’s headquarters. Letters from the White House questioned the necessity and legality of the project, suggesting these concerns could be grounds for removal. Other officials, such as Bill Pulte, head of the Federal Housing Finance Agency, have publicly stated that Powell’s resignation “would be the right decision for America.”Despite all this, Bessent emphasised that Trump has “numerous times” said he is not going to fire Powell. Powell himself has requested an inspector general review of the renovation project and reaffirmed his commitment to complete his term.As for who might succeed Powell, Bessent denied speculation about his own candidacy, saying he is “part of the decision-making process” but pointing out there are “a lot of good, strong candidates” both inside and outside the Federal Reserve.The Trump administration is reportedly aiming to announce a nominee as early as October or November.
