Trump Targets Fed Chair Powell, Plans Possible Shake-Up Ahead of 2026
Trump is once again putting pressure on Federal Reserve Chair Jerome Powell, accusing him of hurting the U.S. economy by keeping interest rates too high. According to Trump, Powell’s decision to avoid deeper and faster rate cuts has cost the country billions of dollars. And now, Trump says he’s actively considering a replacement—well before Powell’s official term ends in 2026.
In a recent conversation with reporters, Trump said he’s narrowed down a list of potential successors to “three or four” people. The Wall Street Journal reports that an announcement could come as soon as this summer, with a final decision likely by fall.
This would be a big move. Powell’s current term doesn’t end until May 2026, and it’s rare for a U.S. president to replace a Fed chair before their time is up. Typically, Fed leadership is seen as independent from political influence, and early replacement could stir controversy—both legally and politically.
Still, Trump has a history of openly criticizing the Fed. During his presidency, he frequently clashed with Powell, arguing that higher interest rates slowed economic growth and hurt U.S. competitiveness. Powell, for his part, held firm, saying the Fed must make decisions based on economic data—not political pressure.
Fast-forward to now, and the debate continues. Trump is again taking aim at Powell, saying the Fed’s slow approach to lowering rates is dragging down the economy. He and his supporters believe that faster, deeper rate cuts would boost economic growth, lower borrowing costs, and strengthen the job market.
Financial markets are already responding to the news. Investors are watching closely, trying to guess what a new Fed appointment could mean for interest rates, inflation, and the broader economy. If Trump wins re-election and follows through with a replacement, the Fed could shift toward a more aggressive rate-cutting path.
That possibility has many economists and analysts concerned. They worry that too much political influence over the Fed could damage its credibility and independence. The Federal Reserve plays a critical role in managing inflation, setting interest rates, and maintaining financial stability. That’s why changes in leadership are usually slow and carefully managed.
Even though Powell still has nearly a year left in his term, the fact that Trump is talking about replacing him now adds uncertainty. It also raises questions about what kind of person Trump might choose. Most expect he’d pick someone who shares his economic philosophy—favoring low interest rates and policies that boost short-term growth.
Supporters argue that this approach would help regular Americans by making loans cheaper and supporting businesses. Critics warn it could overheat the economy or make inflation worse, especially if rate cuts are made too quickly without clear signs that inflation is under control.
For now, Powell continues to lead the central bank, and the Fed is still weighing its next moves carefully. Inflation has cooled compared to last year, but it hasn’t disappeared. The job market remains strong, but concerns about a future slowdown are growing.
Trump’s latest comments only add to the mix. Whether or not he actually replaces Powell, the idea is enough to shake markets and spark debate. And if Trump does win a second term, the Federal Reserve could be headed for its biggest shift in years.
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Trump’s latest comments only add to the mix. Whether or not he actually replaces Powell, the idea is enough to shake markets and spark debate. And if Trump does win a second term, the Federal Reserve could be headed for its biggest shift in years. Trump’s latest comments only add to the mix. Whether or not he actually replaces Powell, the idea is enough to shake markets and spark debate. And if Trump does win a second term, the Federal Reserve could be headed for its biggest shift in years.