- Trump has privately discussed firing Fed Chair Jerome Powell and possibly replacing him with ex-Fed Governor Kevin Warsh.
- Warsh reportedly advised Trump against interfering and suggested letting Powell finish his term.
- Removing Powell could trigger a legal battle, as the Fed chair can only be dismissed “for cause” under U.S. law.
So, behind closed doors, President Donald Trump has apparently been tossing around the idea of firing Federal Reserve Chair Jerome Powell for a while now. According to a Thursday report from the Wall Street Journal, Trump even chatted with former Fed governor Kevin Warsh about stepping in if Powell were to go.
Now, here’s where it gets interesting—Warsh, who was on the Fed board from 2006 to 2011 after being appointed by President George W. Bush, wasn’t exactly on board with the idea. Sources told the Journal that he advised Trump to hold off and just let Powell finish his term without interference. Powell’s current term runs through May 2026.
Apparently, this whole conversation between Trump and Warsh happened back in February down at Mar-a-Lago. But even as recently as March, other people close to Trump were still talking about the possibility. Still, nothing official has come of it.
Legally, things get tricky. The Federal Reserve Act says a Fed chair can only be removed “for cause,” which doesn’t include just disagreeing over interest rates. Powell himself has said that firing him wouldn’t be “permitted under the law.” And if Trump does try it? Yeah, that could spark a legal showdown all the way to the Supreme Court.
At the time of publishing, neither the White House nor Warsh had responded to requests for comment. So for now, it’s all just whispers—but they’re growing louder.
