Federal Reserve Chair Powell Faces Imminent Removal Amid Trump Administration Pressure

In a significant development, a US lawmaker has confirmed that Jerome Powell, the current chair of the Federal Reserve, is set to be removed from his position. Representative Anna Paulina Luna of Florida made this announcement on the social media platform X, stating that Powell's firing is imminent. This revelation comes amidst intense discussions within the Trump administration regarding a potential leadership change at the Federal Reserve, one of the world's most influential central banks.

Adding to the speculation, U.S. Treasury Secretary Scott Bessent has indicated that the search for Powell’s replacement has officially commenced. According to Bessent, a formal process is already in motion, with several candidates both inside and outside the Federal Reserve being considered for the role. This development is noteworthy given that Powell’s current term does not expire until 2026.

Bessent also suggested that Powell should consider leaving the Federal Reserve entirely when his term as chair concludes. The Treasury Secretary believes this move would help avoid confusion within the system and maintain market stability. Bessent emphasized that the ongoing discussions about a new Fed chair are already causing enough uncertainty, and Powell remaining on the Fed’s Board of Governors after his term as chair ends could exacerbate this confusion.

Meanwhile, Jamie Dimon, the CEO of JP Morgan, has been advocating for the independence of the Federal Reserve. Dimon warned that interfering with the central bank could have severe repercussions, a stance that contrasts sharply with the Trump administration's objectives. Dimon believes that the current chair should be allowed to complete his term, which is set to end in 2026.

The Trump administration has long harbored reservations about Powell’s leadership of the Federal Reserve and has not concealed its preference for a different chair. The administration favors a Fed chair who aligns more closely with its desire for lower interest rates and a more accommodative monetary policy. Trump himself has publicly called for Powell’s resignation, criticizing him for not reducing interest rates as he wished.