Washington, DC – President Donald Trump expressed strong dissatisfaction with Federal Reserve Chair Jerome Powell during an Oval Office event on Thursday, indicating that he believes Powell should be removed from his position swiftly. While Trump lacks the direct authority to dismiss the Fed chief due to policy disagreements, his willingness to defy norms and precedents has raised concerns over the potential consequences of his actions.
Reports suggest that Kevin Warsh, a former Fed governor and a previous contender for top positions in the Trump administration, is a leading candidate to take over the central bank. Speculation surrounding Warsh’s potential appointment as Fed chair has intensified as Powell’s term approaches its end in May 2026. The administration, led by Treasury Secretary Scott Bessent, has stated that interviews for Powell’s successor will begin in the fall.
Warsh, who holds a law degree from Harvard University, has held various roles in both the private and public sectors, including serving on the Fed’s Board of Governors during the 2008 financial crisis. His previous experience includes working in economic policy under President George W. Bush and advising Trump’s transition team after the 2016 election. Warsh has been critical of the Fed’s handling of inflation and monetary policy, aligning with Trump’s views on the matter.
In his analysis, Warsh has attributed rising inflation rates to government spending and the central bank’s monetary policies. While mainstream economists point to pandemic-induced disruptions as the primary cause of inflation in recent years, Warsh insists that the Fed should refrain from making political forecasts. He has also expressed concerns about the economic impact of Trump’s tariff policies and emphasized the need for long-term strategies to strengthen the economy.
Warsh’s stance on inflation and governmental spending reflects his belief that the Fed’s decisions play a significant role in shaping the country’s economic trajectory. As discussions about Powell’s potential replacement continue, Warsh’s track record and approach to economic issues will likely be scrutinized by policymakers and the public alike. His connections to influential figures in both political and business circles add a layer of complexity to the ongoing debate over the future leadership of the Federal Reserve.