President Trump is considering removing Federal Reserve Chair Jerome Powell before his term ends in May 2026. According to sources close to the administration, former Fed governor Kevin Warsh is the frontrunner to replace Powell if a change occurs. Warsh, who served during the 2008 financial crisis under Ben Bernanke, has publicly stated that the Fed is politically motivated – a view that aligns with Trump’s perspective.
Trump advisor Steve Moore puts the chances of Powell’s early removal at “a little less than 50-50.” Other candidates include Kevin Hassett, Art Laffer, Larry Kudlow, and Fed Governor Chris Waller, who supports interest rate cuts to prevent recession amid high tariffs. However, Treasury Secretary Scott Bessent opposes Powell’s early removal, calling Fed monetary policy “a jewel box that’s got to be preserved.”
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