Trump Seeks Pro-Dovish Fed Replacement as Powell Era Ends

Trump has intensified efforts to influence the Federal Reserve’s leadership as the tenure of current Chair Jerome Powell nears its end in May 2026. Despite repeated public criticism of Powell for not lowering interest rates quickly enough, legal protections prevent the from removing a sitting Fed chair before the term ends, thus maintaining the central bank’s institutional independence [1]. However, the unexpected resignation of Fed Governor Adriana Kugler in August has created an opening, offering Trump an opportunity to install a candidate aligned with his more aggressive stance on monetary easing [1].

Trump’s frustration with the Fed’s cautious approach has been fueled by recent economic data, such as the July employment report that showed only 73,000 jobs added—well below expectations [1]. The has previously expressed his willingness to replace Powell if given the chance, and now appears to be positioning potential successors who share his preference for rate cuts. Among the speculated candidates are figures like Scott Bessent, Kevin Hassett, Kevin Warsh, and Christopher Waller, all of whom are seen as favoring a more dovish monetary policy [1].

Beyond the Fed, Trump has taken further steps to exert influence over economic reporting, including the recent removal of the Bureau of Labor Statistics head over concerns about data accuracy [1]. These actions suggest a broader strategy to reshape the landscape of economic policymaking in line with his pro-growth agenda.

Market participants have taken notice, with financial indicators now reflecting expectations of potential rate cuts in the near future [1]. As the 2024 election looms and economic pressures mount, the battle for control over U.S. monetary policy continues to gain prominence.

Source: [1]Trump Explores New Fed Leadership as Powell’s Term Winds Down (https://coinpaprika.com/news/trump-explores-new-fed-leadership-as-powell-s-term-winds-down/)