Trump Explores New Fed Leadership as Powell’s Term Winds Down

Former President Trump has repeatedly criticized Fed Chair Jerome Powell for not lowering interest rates fast enough and has even said he would fire him if possible—but current law protects Powell from being removed mid-term.

While Powell’s leadership continues through May 2026, the unexpected resignation of Governor Adriana Kugler opens a seat early in August — giving Trump another chance to shape the Fed.

Bold Key Points: Trump's frustration stems from the Fed’s reluctance to make swift cuts amid disappointing labor reports, such as only 73,000 jobs added in July.

Institutional safeguards mean the president cannot remove a sitting Fed chair before term-end, preserving Fed independence Possible successors include candidates aligned with Trump’s rate-cut stance—such as Scott Bessent, Kevin Hassett, Kevin Warsh, and Christopher Waller—all seen as favoring more aggressive monetary easing.

Recent developments, including firing the Bureau of Labor Statistics head over data he deemed inaccurate, alongside Kugler’s resignation, signal Trump’s broader push to gain leverage over both economic reporting and monetary policy.

Markets have reacted, pricing in potential rate cuts in the coming months..

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