President Donald Trump has engaged in discussions with former Federal Reserve Governor Kevin Warsh regarding the potential replacement of current Fed Chairman Jerome Powell ahead of the conclusion of his term, which is set to expire in May 2026, as reported by the Wall Street Journal on Thursday.
However, sources familiar with the conversations indicated that Warsh has advised Trump against dismissing Powell or intervening in his role as chairman.
The talks reportedly took place at Mar-a-Lago, Trump’s private club in Florida, with some meetings occurring as recently as February. In addition, other figures have approached Trump regarding the removal of Powell within the past month.
Trump has consistently pressed Powell to reduce interest rates, expressing dissatisfaction over Powell’s unwillingness to comply. On Thursday morning, Trump took to Truth Social to voice his opinion, stating that Powell’s “termination cannot come fast enough!”
Looming over these exchanges, Trump ramped up his criticisms during a briefing in the Oval Office later that same day.
“I’m not happy with him. I let him know it, and if I want him out, he’ll be out of there real fast, believe me,” Trump declared, sidestepping inquiries about the possibility of Powell’s removal.
In response to the Journal’s report, the White House directed inquiries to Trump’s statements made in the Oval Office.
Meanwhile, Powell has previously maintained that, under current law, the president lacks the authority to dismiss him.
Trump’s approach has raised concerns even among critics of Powell, with Senator Elizabeth Warren, D-Mass., cautioning that undermining the Federal Reserve’s independence could have dire consequences for the U.S. economy.
