Trump replacing Powell with Bessent could shake US markets

Key Points

• Trump replacing Powell with Bessent could shake US markets
• Powell’s term ends in May 2026, but Trump may act sooner
• Legal hurdles could complicate an early dismissal attempt
• Market stability at risk if a legal battle erupts over Powell’s role

Trump reportedly wants Scott Bessent as Fed Chair—and is willing to shake up US monetary policy to make it happen.

Reports surfaced this week that President Trump is eyeing Treasury Secretary Scott Bessent to replace Jerome Powell as Chair of the Federal Reserve. Though Powell’s term expires in May 2026, Trump is reportedly eager to speed up the timeline.

His dissatisfaction with Powell’s handling of interest rates is well known, and sources say the President is exploring ways to force an early exit—despite clear legal and political risks.

– Europe has lowered interest rates 9 TIMES
– Jerome Powell and the Federal Reserve refuse to lower them for the United States even once

This isn’t financial policy it’s sabotage of Trump’s agenda of lowering costs for Americans. This is 100% political

END THE FEDERAL RESERVE pic.twitter.com/vNjzx3lRPs

— Wall Street Apes (@WallStreetApes) June 4, 2025

Trump’s growing impatience with Jerome Powell

The Federal Reserve holds enormous influence over the US economy. Under Powell, the Fed has pursued an interest rate path that Trump believes is too restrictive, stifling growth and raising borrowing costs.

Tensions between Trump and Powell have simmered for months, with Trump publicly hinting that he wants a change at the helm of the Fed. This week, Bloomberg reported that Trump is seriously considering Scott Bessent, a trusted ally and current Treasury Secretary, for the role.

Chair Jerome Powell announces the Fed has “decided to leave our policy interest rate unchanged.”

End the Fed. Legally.pic.twitter.com/Q07nrQjk8T

— Paul A. Szypula 🇺🇸 (@Bubblebathgirl) June 4, 2025

Bessent is seen as more aligned with Trump’s vision of a looser monetary policy. Installing him as Fed Chair could shift the central bank toward policies that prioritize growth and lower interest rates.

This potential shakeup comes at a time when Trump and his associates are already making waves in the financial world. Recently, controversy erupted as Trump meme coin insiders dumped $52M, sparking major backlash within the crypto community. Meanwhile, Trump himself has reportedly made significant crypto profits, further highlighting his growing involvement in alternative finance.

However, the path to replacing Powell is not straightforward. The Fed Chair’s position is protected by law to preserve central bank independence. In May, the Supreme Court ruled that while Trump has the authority to fire some federal appointees, Powell is exempt due to the Fed’s unique quasi-private status.

Despite this, Trump has reportedly threatened to fire Powell anyway—a move that could trigger a prolonged legal battle and rattle financial markets. The Fed Chair has stated firmly that he will not step down without a fight.

Treasury Secretary Scott Bessent is being floated as the next Fed Chair, to be appointed by President Trump in replacement of Jerome Powell pic.twitter.com/0ucP67S4YM

— Wall Street Gossip (@WallStRollup) June 10, 2025

Trump’s options and the risk of market turmoil

By signaling support for Bessent this early, Trump may be preparing to either fill the role when Powell’s term ends or attempt an earlier move if legal pathways emerge.

Observers point to recent agency disruptions as a possible playbook. The CFTC currently operates with only two of five Commissioners, after several Commissioners overstayed their terms. Similarly, delays in confirming SEC leadership have slowed its operations.

Naming Bessent now could allow Trump to bypass similar delays when Powell’s term ends. Some reports suggest Trump may even attempt to force Powell out sooner, though such a move would likely spark legal challenges and investor uncertainty.

Besides Bessent, other names reportedly under consideration include Kevin Hassett, Director of the National Economic Council; Christopher Waller, a Fed Governor; and David Malpass, former President of the World Bank.

Meanwhile, the broader financial ecosystem is undergoing rapid evolution. Institutional interest in crypto custody services is surging, as more traditional players seek secure ways to handle digital assets. Innovative tools like Pump.fun AI trading bots are also reshaping market dynamics, offering retail traders new ways to participate in the crypto boom.

For now, Trump’s preference seems clear. But unless legal hurdles are cleared, Powell may remain until May 2026, setting up a potentially turbulent showdown over control of US monetary policy.