Trump Targets Powell’s Job as Fed Rate War Heats Up—Who’s Next in the Hot Seat?

Washington’s monetary cage match just got personal. Trump’s gunning for Powell’s scalp as their interest rate feud goes nuclear—and the financial world’s bracing for fallout.

The Fed Chair shuffle

Behind the marble walls of DC power plays, whispers grow louder about Trump’s shortlist of Powell replacements. Gold bugs, crypto anarchists, and Wall Street suits all lean in—every faction wants their puppet controlling the money printer.

Rate rage reaches boiling point

With inflation still biting Main Street and the 2024 election looming, this clash was inevitable. The real question? Whether Powell’s ‘data-dependent’ mantra can survive Trump’s trademark policy-by-tweet assaults.

Bonus jab: Nothing unites politicians faster than the chance to blame someone else for the economy they broke.

Trump Turns Up the Heat on the Fed

Trump’s frustration with Powell isn’t new—but it’s never been louder. Speaking at a NATO summit, Trump doubled down, calling Powell “very stupid” and “terrible.” He blamed Powell’s refusal to slash interest rates for costing taxpayers hundreds of billions in extra debt payments. Trump says rates should already be between 1% and 2%, far below the current 4.25%–4.5%. He even claimed the U.S. is paying up to $900 billion more annually because of Powell’s inaction. This isn’t just personal. Trump sees Powell’s stance as a threat to the country’s economic future—and to his own political agenda. That’s why he’s making replacement plans now, rather than waiting until Powell’s term ends in 2026. Trump clearly wants someone who will follow through on his vision for aggressive rate cuts, regardless of inflation risks.

Trump’s Shortlist: Who Could Replace Powell?

Trump has said he already knows “within three or four people” who could take Powell’s place. Some names are already circulating in Washington. These include former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, and Treasury Secretary Scott Bessent. Each candidate brings a different background—but all are seen as more open to faster interest rate reductions. Bessent has publicly stated he’s happy to do “whatever President Trump wants,” while Waller has shown support for earlier rate cuts, citing softening inflation data. Warsh, who has long been considered a Fed hawk, could pivot if aligned with Trump’s policy goals. These picks signal one thing clearly: Trump wants control, and he wants a Fed chair who will deliver the cuts he believes are long overdue.

Trump Allies Join the Battle Over Interest Rates

Trump isn’t fighting this war alone. Business leaders and GOP lawmakers are echoing his call to bring rates down fast. Howard Lutnick, CEO of Cantor Fitzgerald, argued that the U.S. brings in over $30 billion a month from tariffs—money that could help lower the deficit if borrowing costs were reduced. Each percentage point cut in interest rates could save the government hundreds of billions, Lutnick emphasized. Republicans in Congress have also turned up the pressure. Senator Bernie Moreno even suggested Powell might be undermining Trump’s economic agenda for political reasons. As the debt ceiling looms and Trump pushes for massive new tax cuts, GOP lawmakers insist the Fed must act as a partner—not an obstacle.

Powell Stays the Course Amid Trump’s Attacks

While Trump demands speed, Powell is sticking to his cautious playbook. During two days of testimony on Capitol Hill, he made it clear: the Fed won’t cut rates until inflation is clearly under control. He warned that Trump’s tariffs could spark new waves of price increases. Rushing to lower rates now, Powell said, could backfire—and consumers WOULD pay the price. Not everyone at the Fed agrees. Trump appointees like Michelle Bowman and Christopher Waller support earlier cuts, citing recent mild inflation data. But Powell has held the majority of the committee behind his steady-hand strategy. Whether that approach will hold through the July policy meeting remains to be seen—but Trump is already preparing to make sure it doesn’t last past 2026.