Trump Drops Bombshell: "Powell Out in 8 Months"—Fed Shake-Up Looms

Jerome Powell's days as Fed Chair are numbered—at least according to Donald Trump. The former president just fired a warning shot across the bow of monetary policy, claiming Powell's exit is imminent.

Timing is everything: With exactly 8 months left on Trump's countdown clock, markets are bracing for a potential leadership vacuum at the world's most powerful central bank. Because nothing says 'stable monetary policy' like a politically-charged Fed chair musical chairs.

While Powell hasn't confirmed the timeline (or packed his boxes), the mere suggestion sends tremors through Wall Street. Traders now face their favorite nightmare scenario: guessing which Trump loyalist might inherit the money printer next.

Who is leaving the Fed next?

According to the law, the president nominates a Fed chair and two vice chairs for four-year terms. They are confirmed by the Senate for those positions in a vote distinct from their confirmation as Fed Board of Governors members.

In this case, Jerome Powell, a Barack Obama nominee, and Michelle Bowman for the vice chair post. She was nominated by President Trump and took office for a four-year term on June 9, 2025. 

On the other hand, the president and Senate have no say in picking presidents of the 12 regional Fed banks. They’re chosen by their private sector boards of directors, subject to the approval of the Fed Board of Governors in Washington.

In this case,  Biden nominees for the Fed board that may not favor Trump long-term are Lisa Cook, confirmed by the Senate twice for a term that expires in 2038, and Adriana Kugler, confirmed for a term that expires in 2026. 

Other board members are Christopher Waller, confirmed till January 2030; Michael Barr, confirmed till January 2032; Michelle Bowman, confirmed till January 2034; and Philip Jefferson, confirmed till January 2036.

Finally, Presidents of the regional Fed banks can serve until they’re 65 unless appointed after turning 55, in which case they can serve for a maximum of 10 years or until they’re 75.

They are up for reappointment every five years. Meanwhile, all twelve are leaving earliest in 2028 or latest in 2038. The Fed Board of Governors in Washington could replace any of them, though it hasn’t ever done so.

Trump calls Powell’s rate cut move political

According to Trump, Powell has refused to lower costs for political reasons. This is controversial because he said he would hire someone to lower interest rates. He said that Europe has lowered its interest rates regularly, but “Mr too late” has not lowered those of the US.

To that end, whoever the successful candidate is could carry the specter of being there simply to do Trump’s bidding on interest rates.

Rumors continue to put more pressure on Powell. This time, not from Trump. Federal Housing Director Pulte says he believes Fed Chair Jerome Powell “will be resigning soon, but today is not the day.” Contrary to the time frame, reports emerged today that Powell had resigned. 

There are currently reports circulating that Fed Chair Powell has "officially resigned."

These reports are FAKE.

Fed Chair Powell has yet to even discuss a possible resignation.

And, in his comments this morning, Powell did NOT discuss any topics pertaining to a resignation.

— The Kobeissi Letter (@KobeissiLetter) July 22, 2025

They were debunked in no time. Fed Chair Powell has yet even to discuss a possible resignation.

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