Trump's Tension with Fed: The Question of Jerome Powell's Fate

President Donald Trump has contemplated removing Federal Reserve Chair Jerome Powell, discussing this with former Fed Governor Kevin Warsh. Warsh advised against this, urging Trump to let Powell finish his term. The situation remains unresolved as Powell's term lasts until May 2026.

President Donald Trump has been considering the dismissal of Federal Reserve Chair Jerome Powell and has engaged in discussions with former Fed Governor Kevin Warsh about the possibility of appointing Warsh as his successor, reports the Wall Street Journal.

Warsh reportedly cautioned Trump against such actions, advising the president to allow Powell to complete his term without interference. This advice comes as Trump has publicly criticized Powell, whose term is set to end in May 2026.

Conversations about this matter have been ongoing, with discussions taking place as recently as March among individuals close to Trump. The legality of firing Powell is uncertain, as the move could face challenges up to the Supreme Court, given that the Federal Reserve Act allows dismissal only "for cause."

(With inputs from agencies.)