đ¨ *RUMOR ALERT: TRUMP EYES NEW FED CHAIR?* đşđ¸đź
Recent reports suggest that President Donald Trump is considering replacing Federal Reserve Chair Jerome Powell before his term ends in May 2026. đľď¸ââď¸đ
đ¤ Who's the Potential Successor?
*Kevin Warsh*, a former Federal Reserve governor and Morgan Stanley banker, is reportedly in discussions with Trump regarding the Fed Chair position. Warsh has previously served as an economic advisor to President George W. Bush and played a pivotal role during the 2007-2008 financial crisis.
đ What's the Motivation?
Trump has expressed dissatisfaction with Powell's performance, criticizing him for being "consistently late and wrong" in his decisions. He has also claimed the authority to remove Powell and has held discussions with Warsh at Mar-a-Lago about the possible appointment.
âď¸ Legal Hurdles
The Federal Reserve Act allows for the dismissal of a Fed Chair "for cause," typically interpreted as misconduct or incapacityânot policy disagreements. Powell has stated that he would not step down voluntarily and maintains that the president does not have the legal authority to fire him.
đ Market Implications
If Warsh, known for his advocacy of central bank digital currencies and criticism of excessive government spending, were to become Fed Chair, it could signal a shift in monetary policy. This potential change has led to speculation about increased market volatility and the future direction of interest rates.
Stay tuned for updates as this story develops. đ°đ
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