Trump Takes Aim at Powell: High-Stakes Battle Over Fed Leadership Heats Up

Political fireworks erupt as former President Trump renews attacks on Jerome Powell—while pushing his own pick for Fed Chair.

Who controls America's money printer? The escalating feud could shake markets as crypto traders watch for dollar weakness.

Because nothing says 'sound monetary policy' like a reality TV star picking central bankers between golf rounds.

Trump targets Powell amid push to name successor

President Trump, who began his second term in January, confirmed earlier this month that he WOULD soon name a successor to Powell, nearly a year before the Fed chair’s term ends in 2026. On Wednesday, Trump made a few comments attacking Powell during a campaign stop.

“We have a stupid person at the Fed. He probably won’t cut today,” Trump said. “Maybe I should go to the Fed. Am I allowed to appoint myself at the Fed?” The president also claimed, “I don’t even think he’s political. I think he hates me.”

Powell gave no comment to address Trump’s outrage.

Trump has continued to exert public pressure on the Fed, insinuating that an announcement on Powell’s replacement is imminent.

Polymarket data shows a 91.5% chance there will be no announcement before the end of June. Former Fed Governor Kevin Warsh holds a 3.5% chance of being named, followed by Judy Shelton at 1.9% and economist Kevin Hassett at 1.8%.

Fed independence is integral to market balance

Analysts warn that appointing a Fed chair viewed as beholden to Trump could bring down the public’s confidence in the central bank’s independence. 

“Whomever is appointed, the key thing to monitor is whether they are perceived as being a political appointee,” said Eric Winograd, chief US economist at AllianceBernstein.

The chair is just one vote on the Fed’s 18-member policy committee but serves as its most public face and primary consensus-builder. 

“Any Wall Street manager would tell you that Fed independence is the golden rule of markets,” said Callie Cox, chief market strategist at Ritholtz Wealth Management. “To MOVE away from that can introduce a whole host of issues.”

Investors believe that a politically neutral central bank is needed for a country’s economic stability. “Any Wall Street manager would tell you that Fed independence is the golden rule of markets,” said Callie Cox, chief market strategist at Ritholtz Wealth Management. “To move away from that can introduce a whole host of issues.”

The Fed’s dual mandate, maximum employment and stable prices, depends on a balanced, apolitical approach to monetary policy. Any deviation from that model, analysts warn, could lead to increased market volatility, higher inflation risks, or policy missteps.

“If they get it wrong, they can allow inflation to run unchecked or do some real damage to the economy,” Cramer explained.

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