Survey: Three top contenders vying to succeed Powell
2025-07-30 14:39:19
After Federal Reserve Chairman Powell's term expires, there is actually a three-way competition to succeed him as Federal Reserve Chairman.
CNBC's Fed survey found that 24% of respondents said President Trump would replace Powell with Treasury Secretary Jeff Bessant, and 24% said former Fed Governor Warsh would replace Powell.
Following closely behind is National Economic Council Director Hassett, with a 22% approval rating; while current Federal Reserve Board Governor Waller has an even lower approval rating, at 14%.
Trump has repeatedly called for Powell's resignation, saying he cut interest rates too late and considering firing him.
He also accused the Fed chairman of mismanaging a $2.5 billion renovation of its headquarters and a separate building, an accusation Powell denied. The president offered no evidence for the allegation, other than cost overruns.
After a recent tour of the construction site, the president appeared to temper his criticism of the project and Fed monetary policy, and suggested he would not fire Powell, whose term as chairman ends in May 2026, though he can remain on the Fed board until 2028 if he chooses.
In the survey, 84% of the 37 respondents, including fund managers, economists and strategists, said the president would not fire Powell before his term ends.
Economist Joel Naroff wrote: "With the race to become the next Fed chair already underway, it is clear that the Fed's independence has been compromised. This has raised long-term interest rates and weakened the dollar. It is hard to believe this will change, especially given the expectation that the next Fed chair will be a Trump loyalist."
Overall, respondents gave Powell a B-, up from a C+ when CNBC asked the question in 2023. He received Bs in leadership, transparency, market knowledge, and communication, but a C- on economic forecasting (up from a D in 2023). Respondents gave Powell a B- for his expertise in both economics and regulation.
Former Federal Reserve Chairman Ben Bernanke's final grade when he left office was a B, while Yellen's final grade was a B+.
CNBC's Fed survey found that 24% of respondents said President Trump would replace Powell with Treasury Secretary Jeff Bessant, and 24% said former Fed Governor Warsh would replace Powell.
Following closely behind is National Economic Council Director Hassett, with a 22% approval rating; while current Federal Reserve Board Governor Waller has an even lower approval rating, at 14%.
Trump has repeatedly called for Powell's resignation, saying he cut interest rates too late and considering firing him.
He also accused the Fed chairman of mismanaging a $2.5 billion renovation of its headquarters and a separate building, an accusation Powell denied. The president offered no evidence for the allegation, other than cost overruns.
After a recent tour of the construction site, the president appeared to temper his criticism of the project and Fed monetary policy, and suggested he would not fire Powell, whose term as chairman ends in May 2026, though he can remain on the Fed board until 2028 if he chooses.
In the survey, 84% of the 37 respondents, including fund managers, economists and strategists, said the president would not fire Powell before his term ends.
Economist Joel Naroff wrote: "With the race to become the next Fed chair already underway, it is clear that the Fed's independence has been compromised. This has raised long-term interest rates and weakened the dollar. It is hard to believe this will change, especially given the expectation that the next Fed chair will be a Trump loyalist."
Overall, respondents gave Powell a B-, up from a C+ when CNBC asked the question in 2023. He received Bs in leadership, transparency, market knowledge, and communication, but a C- on economic forecasting (up from a D in 2023). Respondents gave Powell a B- for his expertise in both economics and regulation.
Former Federal Reserve Chairman Ben Bernanke's final grade when he left office was a B, while Yellen's final grade was a B+.
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