Trump is considering three to four candidates to replace Jerome Powell as Fed Chair before his term ends in 2026.
The president continues to pressure the Fed for immediate rate cuts.
Legal rulings limit Trump's ability to fire Powell early, but he may announce a successor to influence policy direction.
President Donald Trump has intensified scrutiny of Federal Reserve Chair Jerome Powell, stating he is actively evaluating replacements. During remarks to reporters, Trump confirmed that he has narrowed his options to three or four individuals. While he withheld detailed names, the announcement marks a clear signal of probable changes in monetary leadership well before Powell’s term ends in May 2026.
Trump’s continued focus on Powell’s future comes amid continued dispute over interest rate policy. Trump remains vocal about his desire for faster rate cuts, while Powell has maintained a cautious view. Speaking on Wednesday during a press briefing in the Netherlands, Trump remarked that Powell was hurting the economy. Powell was simultaneously delivering testimony to Senate lawmakers in Washington.
Friction Over Monetary Policy Deepens
The president has frequently criticized Powell and the Federal Reserve’s pace on interest rate decisions. Last week, Trump urged the Fed to reduce rates from the current 4.25%–4.5% range down to between 1% and 2%. He repeated similar demands in a Tuesday social media post, calling for rate cuts “at least two to three points lower.”
Trump also criticized Powell’s refusal to lower rates and described him as “very dumb” and “hardheaded.” He added that Americans would “pay for his incompetence for many years.” Although no official nominee has been announced, Brian Schwartz identified several possible candidates through an X post. Among those being considered are Kevin Warsh, Kevin Hassett, Chris Waller, and David Malpass.
https://twitter.com/schwartzbWSJ/status/1938009939072659902
Scott Bessent, a former investment officer, is also gaining internal support. All five are seen as more favorable to Trump’s call for rate cuts and more aggressive economic stimulus. Trump acknowledged, “I know within three or four people who I’m going to pick,” but did not confirm when a final decision would be made.
Legal and Political Obstacles Remain
While Trump has publicly questioned whether Powell should be removed before his term expires, legal barriers remain in place. A recent Supreme Court ruling reaffirmed the Federal Reserve’s institutional independence, complicating any effort to dismiss the chair prematurely.
Trump’s previous consideration of firing Powell during his first term was abandoned after markets responded negatively. For now, Powell has stated his intention to complete his term through May 2026. However, Trump’s comments indicate growing urgency to influence future monetary leadership.
In his recent testimony before the congress, Powell informed legislators that the Fed is in a better position to wait on rate adjustments. The reasons of waiting were uncertainties associated with the proposed tariffs and inflation by Trump, he stated. Trump keeps on claiming that the present inflation rates warrant instant cuts.