Trump claims Powell won’t be “very happy” continuing at Fed
President Donald Trump indicated that Jerome Powell would face challenges during his time on the Federal Reserve’s Board of Governors once his term as chair concluded, in his latest critique of the central bank leader. “We’ll see how it all works out,” Trump stated during an interview. However, when questioned about the possibility of Powell remaining as a Fed governor until 2028, Trump, who has been looking for a replacement chair, warned that “if that happens, his life won’t be very, very happy, I don’t think.” The Trump administration has escalated its confrontation with the current Fed chair, issuing subpoenas that suggest a potential criminal investigation into the central bank’s renovation of its Washington headquarters. Powell’s strong rebuttal to that investigation — condemning the probe as an effort at “political pressure” — has fueled speculation that he may opt to remain in his position even after his term as chair concludes in May.
In this scenario, Powell would likely maintain significant influence over policymaking decisions at the world’s most powerful central bank. By remaining in his position, Powell would also prevent Trump from gaining another opportunity on the Board of Governors. Should another sitting governor not be selected as the next chair, it would compel the White House to utilize the role held by Governor Stephen Miran to appoint Trump’s choice at the central bank. Miran, currently on unpaid leave from his role as a senior economic adviser to the president, was confirmed for a term that ends this month; however, he may continue in his position until a replacement is appointed.
Trump’s extensive search for a new Fed chair seems to be approaching its end, as the president stated on Wednesday that he has narrowed the list of candidates in what is regarded as a four-person competition. “I’d say we’re down to three, but we’re down to two, and I probably can tell you we’re down to maybe one in my mind,” Trump stated. Rick Rieder of BlackRock Inc., National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller, and former governor Kevin Warsh have emerged as the final candidates following a search conducted by Treasury Secretary Scott Bessent. Hassett was once viewed as the leading candidate for the position, but last week, Trump voiced concerns that transferring Hassett to the Fed would rob his administration of a strong advocate for economic policy, a worry he reiterated on Wednesday. “I like actually keeping him where he is,” Trump stated.
Rieder, BlackRock’s chief investment officer of global fixed income, has gained momentum, according to sources, who suggest he is seen as potentially easier to confirm. The subpoenas issued by the Trump administration to the Fed have posed challenges to Trump’s efforts in obtaining confirmation for his choice to succeed Powell. Senator Thom Tillis, a Republican member of the chamber’s banking committee, has pledged to oppose any Federal Reserve nomination until that case is resolved. Trump minimized worries regarding that situation during the interview, responding to inquiries with a dismissive “whatever. He’s not going to be a senator too much longer,” he remarked regarding Tillis, who is not pursuing reelection this year.
