- Trump says he’s considering 3 or 4 candidates to replace Fed Chair Jerome Powell amid rising tensions over interest rate policy.
- Powell, testifying before Congress, defends the Fed’s cautious approach and signals no immediate rate cuts.
- Possible replacements include Kevin Warsh, Chris Waller, and Treasury Secretary Scott Bessent.
President Donald Trump has confirmed he’s actively considering replacements for Federal Reserve Chair Jerome Powell, narrowing his shortlist to “three or four” candidates. His remarks follow months of growing frustration with Powell’s refusal to aggressively cut interest rates, despite Trump’s repeated demands for sharp reductions.
Tensions Escalate Over Monetary Policy
Trump has accused Powell of dragging down the economy by keeping rates too high, arguing there is “no inflation” and that rates should be slashed by at least a full percentage point. During a press conference in the Netherlands, Trump called Powell “very stupid” and an “average mentally person,” while suggesting that his replacement could be announced soon—even though Powell’s term doesn’t end until May 2026.
Powell Holds the Line Before Congress
While Trump was criticizing him abroad, Powell testified before Senate lawmakers in Washington, restating the Fed’s view that more time is needed to assess the economic impact of tariffs before adjusting rates. He repeated that the central bank is in a strong position to “wait and see” before acting, a stance that has frustrated Trump and some in his administration.
Possible Successors in the Spotlight
Among those rumored to be in the running to replace Powell are former Fed governor Kevin Warsh, current governor Chris Waller, and Treasury Secretary Scott Bessent.
While Bessent has expressed a desire to remain in his current role through 2029, he also signaled openness to serving wherever the president needs him.
