🔹 Tensions between Donald Trump and Federal Reserve Chair Jerome Powell are heating up. Trump has repeatedly criticized Powell for delaying interest rate cuts – and speculation about a potential replacement is gaining traction. Who could be next to lead the U.S. central bank?

⚖️ Trump vs. Powell: A Clash Over Tariff Policy

Donald Trump has long called on the Fed to cut interest rates, especially in response to his implementation of new import tariffs. He points to the European Central Bank’s ten rate cuts as a benchmark, suggesting the Fed is falling behind.

Powell, however, insists that the Fed must first evaluate the impact of tariffs on the economy before making any drastic policy moves. This disagreement has fueled rumors of Trump possibly removing Powell from his post – but it’s not that simple.

🏛️ Can Trump Really Fire Powell?

Despite the president’s powerful role, the Federal Reserve is an independent institution, and the chair cannot be dismissed at will. The U.S. Supreme Court recently reaffirmed this independence, noting that the Fed operates differently from typical federal agencies.

This means Powell is likely to remain in office until his term ends in May 2026. Nevertheless, Trump has already started vetting potential successors, and informal interviews have reportedly begun within his economic advisory team.

🧠 Who Could Replace Powell?

According to White House economic correspondent Brian Schwartz, the following candidates are under consideration:

🔹 Kevin Warsh – Former Fed governor

🔹 Kevin Hassett – Former head of the National Economic Council

🔹 Christopher Waller – Current Fed governor

🔹 David Malpass – Former World Bank president

🔹 Scott Bessent – Trump’s top choice for Treasury Secretary

Each of these candidates is known for their strong economic backgrounds and Republican alignment, making them favorable in Trump’s eyes – although each faces their own hurdles.

📊 Market Predictions: Who’s in the Lead?

On the prediction market platform Polymarket, investors are already betting on who might succeed Powell. The current odds show:

🔹 Kevin Warsh – 23%

🔹 Christopher Waller – 21%

🔹 Kevin Hassett – 17%

🔹 Scott Bessent – 11%

🔹 Judy Shelton – 10%

Interestingly, there’s also a 16% chance that no replacement will be named this year, suggesting the decision may come in 2026 or just ahead of Powell’s term expiration.

🧠 What Does This Mean for the Markets?

While Powell continues to pursue a cautious monetary policy, Trump is already thinking ahead, aiming to position someone more aligned with his economic agenda. The next Fed chair will play a critical role in shaping U.S. monetary policy – and that choice could have ripple effects across the global financial system.



#Fed , #JeromePowell , #DonaldTrump , #FederalReserve , #economy

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