President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, openly expressing his eagerness for Powell’s departure. During an Oval Office event on Thursday, Trump remarked that Powell’s “termination can’t come fast enough” and suggested that Powell could “be out of there real fast” if he wishes. Despite the fact that many experts argue the president lacks the authority to dismiss the Fed chief over policy disagreements, Trump seems prepared to challenge established norms, even with potentially severe consequences.
Speculation is rife about Powell’s future, whether he will serve out his term ending in May 2026 or leave earlier. Kevin Warsh, a former Federal Reserve governor, is reportedly a leading candidate to replace Powell. Warsh, who was once considered for the position of Treasury secretary during Trump’s second term and was a candidate for Fed chair during Trump’s first term, appears to be a strong contender.
Scott Bessent, newly appointed Treasury Secretary, has indicated that the administration plans to begin interviewing candidates for the Fed chair position “sometime in the fall.” Bessent emphasized the importance of maintaining the integrity of monetary policy, describing it as a “jewel box that’s got to be preserved,” amidst rumors that Trump might attempt to remove Powell before his term concludes.
Kevin Warsh, 55, boasts an impressive career. Before his tenure at the Federal Reserve, he was a vice president and executive director at Morgan Stanley, specializing in mergers and acquisitions. He later served as a special assistant for economic policy under President George Bush and was an executive secretary at the National Economic Council. Despite not holding a graduate degree in economics, Warsh’s credentials include a 1995 graduation from Harvard Law School.
Appointed by Bush to the Fed’s Board of Governors in 2006, Warsh played a pivotal role during the Great Recession, acting as a chief liaison to Wall Street. He was instrumental in orchestrating the sale of Bear Stearns to JPMorgan Chase but was also involved in allowing Lehman Brothers’ collapse in 2008, a critical moment for global financial markets. In 2011, Warsh resigned from the Federal Reserve, opposing the central bank’s controversial decision to purchase $600 billion in bonds.
Recently, Warsh advised Trump’s transition team on economic matters following the November election. In a January op-ed for The Wall Street Journal, he echoed Trump’s criticisms of the Federal Reserve, accusing it of mishandling inflation. Presently, Warsh is a distinguished economics fellow at the Hoover Institution and a visiting scholar at Stanford University’s Graduate School of Business. He also serves as an adviser on the Congressional Budget Office’s panel.
Warsh, who is married to billionaire Jane Lauder, granddaughter of cosmetics mogul Estée Lauder, has been vocal in his economic critiques. In his Wall Street Journal piece, he attributed recent inflation to government overspending and excessive money printing by the central bank, contrary to most economists who link the inflation surge in 2021 to pandemic-related demand and supply shocks.
In a recent Fox Business interview, Warsh discussed the economic challenges posed by Trump’s tariff policies, describing the situation as an economic “transition.” He noted, “The president inherited a fiscal and economic and regulatory mess, and it’s going to take a little digging out to be on a stronger platform for growth.” Addressing concerns over inflation, Warsh remarked, “Inflation is a choice, and the Fed has made a lot of bad choices over these last several years.” He stressed the need for Trump to curb government spending to combat inflation, asserting, “The president has to take matters into his own hands and try to kill inflation by reducing government spending.”
