๐บ๐ธ ๐ง๐ฟ๐๐บ๐ฝ ๐ ๐ฎ๐ ๐ฅ๐ฒ๐ฝ๐น๐ฎ๐ฐ๐ฒ ๐ฃ๐ผ๐๐ฒ๐น๐น ๐๐ฎ๐ฟ๐น๐: ๐ช๐ต๐ผโ๐ ๐ผ๐ป ๐๐ถ๐ ๐ฆ๐ต๐ผ๐ฟ๐๐น๐ถ๐๐?
๐ฉ Whatโs Happening?
Donald Trump is planning to replace Federal Reserve Chair Jerome Powell if he returns to the White House. Powellโs term ends in May 2026, but Trump may announce a replacement much earlier due to disagreements over interest rate policy.
๐ฉ Why the Tension?
Trump wants faster interest rate cuts to boost the economy. Powell has been more cautious, warning that Trumpโs tariff plans could increase inflation, requiring rates to stay higher.
๐ฉ Who Might Replace Powell?
Trump is considering 3โ4 candidates who are more likely to support his economic agenda:
Kevin Warsh (ex-Fed governor)
Kevin Hassett (former Trump adviser)
Chris Waller (current Fed governor)
David Malpass (ex-World Bank president)
Scott Bessent (investor, gaining momentum)
๐ฉ Can Trump Fire Powell?
Legally, firing Powell isnโt easy. The Fed is independent, and a recent Supreme Court ruling confirmed the chair canโt be removed over policy disagreements. Trump could still apply pressure or delay reappointment.
๐ฉ Why It Matters for Markets
A Trump-led Fed could mean faster rate cuts and a shift toward pro-growth policies. But naming a new chair too soon might shake investor confidence and add volatility.
โ Bottom Line:
Trump is preparing for change at the Fed. While Powell stays for now, the market should watch Trumpโs shortlist closely โ the next chair could shape U.S. interest rates and inflation policy for years to come.