Fed Chair Jerome Powell Future in Doubt as Trump Eyes New Leadership

With Jay Powell’s term as Chair of the Federal Reserve set to end in May 2026, the conversation about who might take his place is beginning to take shape more publicly. This shift has been prompted in part by President Donald Trump’s repeated criticisms of Powell and the central bank’s recent decisions.

Among those now being mentioned more frequently are Kevin Warsh, a former Fed governor with past ties to Republican administrations, and Chris Waller, a current member of the Fed’s Board of Governors. Both have recently spoken on the state of the Fed, offering different views on its responsibilities and independence.

Kevin Warsh Calls for a Rethink of the Fed’s Role

In an April 25 speech in Washington, Kevin Warsh addressed concerns about how the Federal Reserve has been operating. He argued that the institution has stepped beyond its core mandate, describing many of its recent challenges as outcomes of internal misjudgments rather than external pressure.

Warsh said the Fed needs to realign itself with its original purpose, noting that its credibility has taken a hit. He stressed that the Fed’s independence is vital but should be based on responsible conduct rather than repeated declarations. “Independence is often cited when the Fed faces criticism, but that alone doesn’t justify its actions,” he remarked.

His comments reflected a viewpoint that the central bank should focus more strictly on price stability and employment, avoiding broader goals that risk diluting its effectiveness. Warsh is considered a strong candidate if political leadership changes hands before Powell’s term expires.

Chris Waller Highlights the Importance of Staying Focused

In a separate interview aired April 24, Fed Governor Chris Waller addressed the issue of political criticism head-on. Speaking calmly about the realities of central banking, Waller acknowledged that any person in the Fed chair role will face scrutiny, especially from political leaders.

“You know going into this job that criticism is part of the role,” Waller said. “If you’re not prepared for that, it’s probably not the right position.”

He underscored that despite external pressure, the Fed’s approach to policy must remain based on data and independent judgment. Waller emphasized the importance of keeping monetary decisions free from political interference, noting that this tradition must continue with whoever takes over next.

Trump’s Statements Put the Spotlight Back on the Fed

President Trump’s growing dissatisfaction with Powell has added urgency to the leadership discussion. At a recent rally in Michigan, he said, “I have a Fed person who is not really doing a good job,” and in follow-up comments, he said the Fed should lower interest rates.

Trump also hinted online in April that Powell should be removed before the end of his term, briefly raising concerns among investors. Although the White House reportedly looked into the possibility, Trump later said he wouldn’t attempt to remove Powell.

Even after softening his position, Trump continued to criticize the Fed’s decisions—especially its stance on interest rates—despite a strong jobs report suggesting that the current policy remains effective.

Fed Meeting Ahead as Public Interest Increases

The Federal Reserve’s next policy meeting is scheduled for the coming week, with Chair Powell set to address the media afterward. Market analysts expect the Fed to leave interest rates unchanged as officials continue monitoring inflation trends and labor market data.

With the central bank’s decisions under closer watch and its leadership now the subject of open debate, the institution finds itself in a period of heightened visibility. The remarks from Warsh and Waller offer an early look at the priorities and philosophies that may guide the next chair—whoever that may be.

Also Read: Trump May Replace Fed Chair Jerome Powell: Kevin Warsh and Waller Top List