Biggest immediate change for Fed under new chair likely to be tone shift

The new Federal Reserve chair, to be selected by President Donald Trump, could significantly influence monetary policy by changing the tone at the central bank, even if they lack the power to revamp operations single-handedly.

Trump has fumed publicly and privately about the central bank’s course of monetary policy under Fed Chairman Jerome Powell, whose term is up in May 2026. That means Trump will have the opportunity to nominate a new Fed chair, who will have to be confirmed by the Senate.