Trump reportedly discussed removing Powell with former Fed Governor Kevin Warsh.
Kevin Warsh, former governor of the US Federal Reserve, participated in The Semafor World Economy Summit held in Washington, DC, on Thursday, April 18, 2024. Samuel Corum | Bloomberg | Getty Images
President Donald Trump has engaged in discussions with former Federal Reserve Governor Kevin Warsh regarding the potential replacement of the current central bank chairman, Jerome Powell, before the conclusion of his term, which is reported by The Wall Street Journal. However, Warsh has advised Trump against dismissing Powell or interfering with his tenure, according to sources familiar with the discussions. Powell’s four-year term is set to expire in May 2026.
Trump’s conversations with Warsh occurred during meetings at his Mar-a-Lago residence in Florida, with some discussions extending as recently as February. Others have reportedly spoken to Trump about the prospect of firing Powell as recently as early March.
Trump has consistently called on Powell to reduce interest rates and has criticized him for his refusal to do so. In a post on Truth Social on Thursday morning, Trump stated that Powell’s “termination cannot come fast enough!”
Later that day in the Oval Office, Trump continued to apply pressure on the Federal Reserve chair. “I’m not happy with him. I let him know it, and if I want him out, he’ll be out of there real fast, believe me,” Trump remarked, sidestepping repeated questions about his intentions regarding Powell’s position.
When asked to comment on the Journal’s report, the White House directed inquiries to Trump’s statements in the Oval Office. Powell has previously asserted that the president does not possess the legal authority to dismiss him.
Trump’s confrontational approach has raised concerns from various quarters, even among some of Powell’s critics, including Senator Elizabeth Warren, D-Mass., who cautioned earlier on Thursday that undermining the Fed’s independence could have dire consequences for U.S. markets.
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