If you’ve taken a look at a dollar bill lately, you’ve probably noticed the signatures. But the person whose name really carries weight in your wallet doesn't actually sign the paper. That person is Jerome Powell, the current Chair of the Board of Governors of the Federal Reserve System.
Most people just call him "the Fed Chair." Honestly, he’s basically the most powerful person in the global economy that you didn't actually vote for.
As of January 2026, Powell is still the man at the top, but things are getting incredibly messy. His current term as Chair is scheduled to end on May 15, 2026. Because of that looming deadline, Washington is currently a hive of rumors, legal threats, and high-stakes drama that sounds more like a Netflix political thriller than a dry discussion about interest rates.
The Man in the Hot Seat
Jerome "Jay" Powell isn't your typical academic economist. Unlike his predecessors, Ben Bernanke or Janet Yellen, he doesn’t have a PhD in economics. He’s a lawyer by training. He spent years at The Carlyle Group making a fortune in private equity before moving into public service.
He was first appointed to the Board of Governors by Barack Obama in 2012. Then, Donald Trump elevated him to the Chair position in 2018. Then Joe Biden reappointed him for a second term. He’s seen a lot. He navigated the COVID-19 market crash, the massive inflation spike of 2022, and the subsequent "higher for longer" rate hikes that made everyone's mortgage payments skyrocket.
Right now, Powell is basically the "Lame Duck" of the banking world. Since his term ends in just a few months, everyone is trying to figure out who is next.
🔗 Read more: Is Today a Holiday for the Stock Market? What You Need to Know Before the Opening Bell
The 2026 Drama: Can the President Fire the Fed Chair?
You might have seen the headlines lately about the Trump administration’s Department of Justice launching investigations into Powell. It’s wild. There have been claims about "pretextual" criminal probes regarding Fed building renovations.
Basically, the President wants lower interest rates. Powell has been holding firm on the Fed’s independence, insisting that the central bank makes decisions based on data, not politics. This has led to a massive standoff.
Can the President actually fire him?
- The Law: The Federal Reserve Act says a governor can be removed "for cause."
- The Reality: "For cause" usually means legal or ethical misconduct, not just a disagreement over whether interest rates should be 3% or 5%.
- The Precedent: No Fed Chair has ever been fired by a President. If it happened, the markets would likely lose their minds.
Who Is Next? The Shortlist for the Head of the Federal Reserve
Since Powell's term as Chair ends in May, the race to replace him is wide open. Even though he could technically stay on the Board of Governors until 2028 (his term as a Governor is different from his term as Chair), most Chairs leave the building entirely once their leadership term is up.
Here is who people are talking about right now:
💡 You might also like: Olin Corporation Stock Price: What Most People Get Wrong
Kevin Warsh
Warsh is currently the betting market favorite. He’s a former Fed governor who served during the 2008 financial crisis. He’s got the Wall Street pedigree (Morgan Stanley) and is generally seen as someone who understands the "plumbing" of the financial system. The big question is whether he’d be "independent" enough or if he’d just do whatever the White House asks.
Kevin Hassett
Hassett is the Director of the National Economic Council. He’s been a loyal advisor to Trump for years. However, just recently, the President hinted he might want to keep Hassett exactly where he is, which caused his "stock" as the next Fed Chair to tumble.
Christopher Waller
Waller is already on the Board. He’s known for being a "hawk"—meaning he’s usually worried about inflation and doesn't mind keeping rates high to fight it. Because he’s already been confirmed by the Senate for his current seat, he might be an "easier" pick if the White House wants to avoid a massive confirmation battle.
Michelle Bowman
Bowman is another internal candidate. She’s currently the Vice Chair for Supervision. She’s often been the lone dissenting voice on the board, pushing for a more cautious approach to bank regulations.
Why Does This Actually Matter to You?
It’s easy to tune out "Fed speak," but the person at the head of the Federal Reserve determines how much you pay for almost everything.
📖 Related: Funny Team Work Images: Why Your Office Slack Channel Is Obsessed With Them
- Your Mortgage: If the Fed Chair pushes for lower rates, your ability to buy a house gets easier. If they keep them high, you’re stuck with a 7% interest rate.
- Your Savings: Higher rates are actually great for your high-yield savings account.
- Inflation: The Fed’s main job is keeping prices stable. If they mess up, the price of eggs and gas stays high.
What Happens Now?
We are in a waiting game. The White House is expected to announce a formal nominee very soon—likely by the end of February or early March. That person will then have to go through a grueling Senate confirmation process.
In the meantime, Jay Powell is still the boss. He’s still the one standing at the podium every few months telling the world whether the cost of money is going up or down.
What you should do next:
If you're planning a big financial move, like buying a home or refinancing debt, keep a close eye on the FOMC meeting minutes. Since Powell is in a defensive position against the White House, he may be less likely to cut rates quickly just to avoid looking like he's giving in to political pressure. You might want to lock in your plans sooner rather than later, as the transition to a new Chair in May could cause significant market volatility.
Check the official Federal Reserve Board website or the Brookings Institution’s Fed tracker to see exactly when the nomination is announced, as that will be the first real signal of where interest rates are headed for the rest of 2026.