President Trump has for months privately discussed firing Federal Reserve Chair Jerome Powell, according to people familiar with the matter cited by the WSJ.
- Trump hasn’t made a final decision about whether to try to oust him before his term ends in May 2026
- Trump has spoken with Kevin Warsh, a former Fed governor, about potentially firing Powell before his term ends and possibly selecting Warsh to be his replacement
- Warsh advised against firing Powell in conversations in February
- Warsh gave the impression that the Fed job had all but been offered to him once Powell’s term expires
- Others close to the president have spoken to Trump about firing Powell as recently as early March
- Bessent has consistently pushed back against Trump advisers who want to replace Powell
- Some advisors argue that law isn’t strong enough to maintain Powell’s job if Trump pushes
Warsh is largely seen as Trump’s preferred replacement for Powell. Warsh was a finalist for the job when Trump picked Powell.
You wonder where these leaks are coming from? Who stands to gain from these leaks? Maybe the WSJ has good sources but Trump hates leaks and if I had to guess, this was leaking by a rival of Warsh’s who wants the job for himself.
Earlier today Trump wrote: “Powell’s termination cannot come fast enough!”
The report also notes that six years ago when there were similar rumblings from Trump, Fed leaders decided that if Powell’s status as chair of the Fed’s board was called into question, they would elect him to lead the FOMC, which is traditionally the same person but the FOMC has the power to elect its own Chair.
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