#TrumpVsPowell

As of April 19, 2025, tensions between President Donald Trump and Federal Reserve Chair Jerome Powell have intensified. Trump has publicly criticized Powell for not lowering interest rates promptly, especially when compared to the European Central Bank's actions. In a recent Truth Social post, Trump labeled Powell as "Too Late Jerome" and endorsed his "termination," expressing frustration over the Fed's cautious approach amid his administration's new tariff policies AMERICAN BANKER

Despite these criticisms, Trump had previously indicated in a December 2024 NBC interview that he had no plans to replace Powell, whose term ends in May 2026. However, recent reports suggest that Trump is considering Kevin Warsh, a former Fed governor and economic advisor, as a potential successor. Warsh, known for his conservative monetary views, has met with Trump at Mar-a-Lago to discuss the possibility of taking over the Fed's leadership.

This evolving situation underscores the ongoing debate over the Federal Reserve's independence and the potential implications of political influence on monetary policy.