Trump Discussed Removing Powell With Ex-Fed Governor Warsh
Discussions with Ex-Fed Governor Kevin Warsh Reveal a Divisive Plan Amid Market Jitters
In a stunning revelation published by the Wall Street Journal, it has come to light that President Donald Trump has been privately contemplating the removal of Federal Reserve Chair Jerome Powell for several months, with former Fed Governor Kevin Warsh emerging as a potential successor.
According to sources familiar with the matter, Trump held multiple discussions with Warsh at his Mar-a-Lago residence, considering the possibility of firing Powell before his term ends in May 2026. Notably, Warsh advised against the move, urging Trump to allow Powell to complete his term without interference—highlighting the importance of maintaining the central bank’s independence.
Trump's frustrations with Powell reached a boiling point this week. Speaking at the White House alongside Italian Prime Minister Giorgia Meloni, Trump didn’t mince words:
“Oh he’ll leave. If I ask him to, he’ll be out of there. I don’t think he’s doing the job. He’s always too late, a little slow.”
These remarks echoed an earlier Truth Social post in which Trump exclaimed:
“Powell’s termination cannot come fast enough!”
The tension comes at a sensitive moment, as Powell recently warned of the economic consequences of Trump’s newly imposed tariffs, describing them as likely to increase inflation and slow growth. His comments triggered a sharp Wall Street selloff, adding to the volatility surrounding the Fed’s next policy moves.
Despite the president’s pointed criticism, Powell has maintained a cautious stance, stating the Fed would “wait for greater clarity” before adjusting interest rates. Trump, however, lambasted Powell for not acting sooner, saying:
“He should have lowered Interest Rates, like the ECB, long ago.”
Warsh's opposition to the firing has been mirrored by Treasury Secretary Scott Bessent, who also discouraged any abrupt leadership change at the Fed.
Meanwhile, Senator Elizabeth Warren sounded the alarm in an interview with CNBC, emphasizing that any effort to remove Powell would risk a market crash and undermine the central bank's independence.
Thursday’s market response was mixed, with key indexes like the S&P 500, Dow Jones (DJI), and Nasdaq Composite (COMP:IND) reacting to both Trump’s statements and a separate post-earnings slump from UnitedHealth (UNH).
