Trump says Fed's Jerome Powell should resign immediately

US President Donald Trump wants Federal Reserve Chair Jerome Powell to step down without delay. On Tuesday, Trump said Powell’s reluctance to cut rates had cost the country “hundreds of billions of dollars”. He made it clear he wants someone more in line with his economic stance.

Powell, an investment banker before politics, first joined the Federal Reserve under former President Barack Obama. Trump later promoted him to chair. Powell’s term runs until May 2026 but the president appears determined to push him out sooner.

Shortlist of contenders
Trump is not wasting time. He said last week he is looking at “three or four” names to replace Powell if he leaves. The goal: find someone who matches his economic vision.

Treasury Secretary Scott Bessent’s name has surfaced. Bessent said on FOX Business he is not keen on the job. “We have a lot of great candidates for the Federal Reserve. I think I have the best job in Washington. I get to interact with the president. The Cabinet that he’s chosen is fantastic, and being part of that Cabinet is the dream of a lifetime for me,” he said. But he added, “I will go where the president thinks that I am best suited.”

Bessent’s track record of closing deals for Trump abroad, like his role in softening trade tensions with China, makes him a trusted figure in the Cabinet.

Loyal advisers in the mix
Kevin Hassett, who runs the White House’s National Economic Council, is another option. A close ally in Trump’s first term, Hassett has backed the president’s economic calls, from taxes to trade rows. Hassett said earlier this year that Trump “will continue to study” how to remove Powell.

Michelle Bowman could make history if chosen. She is the Federal Reserve’s vice chair for supervision. That means she shapes the Fed’s rulebook for banks, a priority for Trump, who wants fewer regulatory hurdles. Bowman has already parted ways with Powell on rates, pushing instead for a cut. If Congress confirms her, she would become the second woman to lead the Fed, after Janet Yellen.

Veterans also considered
Kevin Warsh, a former Morgan Stanley banker, is back in the conversation too. Warsh nearly became Fed chair in 2018 but lost out to Powell. He joined the Fed Board young in 2006 and was key during the 2008 crisis. He also advised President George W. Bush.

Christopher Waller rounds out the list. Trump put him on the Fed Board in 2020. Waller has called for rate cuts to protect the jobs market. He usually votes with Powell but says keeping the Fed independent is vital.