President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, expressing dissatisfaction with Powell’s handling of interest rates and suggesting he may seek to replace him before the end of his term in May 2026. Trump has reportedly discussed the possibility of appointing former Fed Governor Kevin Warsh as Powell’s successor.​
Trump’s discontent with Powell centers on the Fed’s decision to maintain higher interest rates amid rising inflation and economic concerns linked to the administration’s tariff policies. The president has accused Powell of “playing politics” and failing to lower rates promptly, asserting that Powell’s “termination cannot come fast enough.” These remarks have raised concerns about potential political interference in the traditionally independent central bank.​
In response to Trump’s comments, Powell has maintained that he will not resign and emphasized the importance of the Fed’s independence in setting monetary policy. Legal experts note that while the president appoints the Fed chair, removing one before the end of their term would require cause, and the matter could be subject to legal challenges.
Kevin Warsh, a former Fed governor and Morgan Stanley banker, has emerged as a potential candidate to replace Powell. Warsh served on the Federal Reserve Board from 2006 to 2011 and played a significant role during the 2008 financial crisis. He has been critical of excessive government spending and has expressed concerns about inflation and the expanding national debt. Warsh has also been involved in discussions about central bank digital currencies and has previously advised against prematurely dismissing Powell.​
While Warsh has not publicly confirmed his interest in the position, reports indicate that he has met with Trump to discuss the potential appointment. The White House has not commented on the matter, and it remains unclear whether Trump will pursue the removal of Powell or wait until his term concludes.
