- Trump prepares to remove Powell amid push for lower interest rates.
- Search begins for new Fed chair aligned with Trump policies.
- Wall Street reacts as Powell’s future at the Fed grows uncertain.
Federal Reserve Chair Jerome Powell is facing increasing pressure as the Trump administration accelerates efforts to replace him with a candidate more supportive of interest rate cuts. The development follows confirmation from Florida Representative Anna Paulina Luna, who stated that Powell’s removal is imminent.
According to Luna’s post on the social media platform X, the administration is actively preparing for a change in leadership at the central bank. Her remarks echo the distaste inside the Trump administration that has long complained about Powell not being supportive of its interest rate policy.
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Secretary of the U.S. Treasury Scott Bessent has confirmed that Powell’s successor has already been sought. He disclosed that they are considering candidates inside and outside the Federal Reserve.
Bessent also said it would be better for Powell to quit the Fed completely when his tenure as chairman is finally over, just in case he creates confusion in the financial system in the future.
Powell’s current term will expire in 2026. However, White House pressure has placed his future leadership in doubt. The government has publicly blamed Powell for failing to impose more aggressive rate cuts, which it thinks are necessary to jumpstart the economy.
Administration Seeks Policy Shift With Fed Leadership Change
Commerce Secretary Howard Lutnick has reportedly used tariff revenue as leverage in discussions surrounding Powell’s position. The administration sees an opportunity to appoint a new chair who is more aligned with its goals of monetary easing and aggressive rate cuts.
Even as Wall Street protests the political interference in the leadership of central banks, prominent figures on the island express their concerns. The CEO of JP Morgan, Jamie Dimon, stated that the independence of the Federal Reserve should be safeguarded.
He cautioned that the removal of Powell may send shock waves over investor confidence and market stability.
Despite these cautions, the Trump administration is intent on full steam ahead. According to internal sources, the search is narrowed to a few preferred candidates who will have a more accommodating policy bent.
Conclusion
With efforts to replace Jerome Powell now in motion, the Trump administration is signaling its intent to install a Federal Reserve chair that is more in tune with its push for lower interest rates. The move could have significant implications for monetary policy and market direction in the near term.
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