Trump Calls for Immediate Resignation of Fed Chair Powell
President Donald Trump is urging Federal Reserve Chair Jerome Powell to resign immediately, criticizing Powell’s resistance to lowering interest rates. On Tuesday, Trump claimed that Powell’s stance had cost the U.S. economy “hundreds of billions of dollars,” and said he wants a central bank leader whose views align more closely with his own economic approach.
Powell, a former investment banker, joined the Fed during the Obama administration and was elevated to the role of chair by Trump. His term extends through May 2026, but Trump appears eager to see him exit well before then.
Trump Eyes Replacements
Trump has already begun considering potential successors. Last week, he mentioned that he is reviewing “three or four” candidates who could step in should Powell depart. His aim is to appoint someone who fully supports his economic agenda.
Among the names floated is Treasury Secretary Scott Bessent. While Bessent told FOX Business that he’s not actively seeking the position, he added, “I’ll serve wherever the president believes I’m most needed.” Bessent’s strong ties to Trump, including his role in easing trade tensions with China, make him a trusted figure within the administration.
Loyal Advisers in Contention
Kevin Hassett, director of the National Economic Council and a longtime Trump ally, is also a possible choice. Known for endorsing Trump’s economic positions—from tax cuts to trade policies—Hassett has previously indicated that Trump is seriously considering ways to remove Powell.
Michelle Bowman, currently the Fed’s vice chair for supervision, is another contender. She’s advocated for interest rate cuts and has already broken from Powell on key monetary policy decisions. If confirmed, Bowman would be the second woman to lead the Fed, after Janet Yellen. Trump values her regulatory stance, particularly her support for reducing oversight on financial institutions.
Veteran Candidates Also in the Frame
Kevin Warsh, a former Morgan Stanley executive and past Fed governor, is back in the mix. A prominent figure during the 2008 financial crisis, Warsh was previously considered for Fed chair in 2018 but was ultimately passed over in favor of Powell. He also served as an advisor to President George W. Bush.
Christopher Waller, appointed to the Fed Board by Trump in 2020, is another possible successor. While Waller has typically voted in line with Powell, he has voiced support for rate cuts to support employment. He has also emphasized the importance of maintaining the Fed’s independence.
In sum, Trump is clearly preparing for a potential leadership shakeup at the Federal Reserve, signaling a desire to reshape the institution in line with his economic vision.
