Trump Considers Early Replacement for Fed Chair Jerome Powell Amid Rate Cut Frustrations

Tensions between former President Donald TRUMP and Federal Reserve Chair Jerome Powell have escalated as Trump reportedly contemplates announcing a successor well before Powell's term expires in May 2026. According to Wall Street Journal journalist Nick Timiraos, Trump's dissatisfaction stems from the Fed's cautious approach to interest rate cuts, a delay he views as detrimental to economic growth.

Trump has hinted at a shortlist of three to four candidates, with loyalists Kevin Warsh, Kevin Hassett, Chris Waller, and David Malpass emerging as frontrunners. Scott Bessent is also gaining traction as a potential nominee. These candidates are perceived as more aligned with Trump's aggressive economic stimulus agenda, including accelerated rate reductions.

Legal constraints complicate any immediate action. A recent Supreme Court ruling limits executive authority to dismiss the Fed chair, making an early announcement a strategic gamble. Trump's MOVE could backfire by subjecting his preferred candidate to heightened scrutiny without guaranteeing confirmation.