Former US President Donald Trump is reportedly weighing the possibility of replacing Jerome Powell as chair of the Federal Reserve if he wins the upcoming election, according to sources close to his campaign. This potential move has ignited fresh debates over the independence of the central bank and the future of US monetary policy.
Why Trump May Seek a New Fed Chair
Trump has long been critical of Powell’s leadership, particularly over interest rate hikes during his presidency. Insiders suggest that Trump believes a more compliant Fed chair could better align with his economic agenda, including potential tax cuts and deregulation.
Market Reactions and Economic Concerns
Financial analysts warn that replacing Powell could unsettle markets, as investors value stability in monetary policy. "Any abrupt change at the Fed risks creating uncertainty, which could lead to market volatility," said one economist.
Political Influence vs. Central Bank Independence
Critics argue that removing Powell would undermine the Fed’s independence, a cornerstone of economic policy since the 1970s. "The Fed must remain free from political pressure to ensure long-term economic stability," warned a senior banking official.
What’s Next?
If Trump proceeds with this plan, the Senate would need to confirm his nominee—a process that could become contentious. Meanwhile, Powell’s current term expires in 2026, leaving room for speculation on whether he would stay on if a new administration takes office.
