In recent months, former U.S. President Donald Trump has reportedly expressed dissatisfaction with Federal Reserve Chairman Jerome Powell and has secretly explored the possibility of removing him from office before his term ends in May 2026.
These private conversations highlight growing tensions between Trump and Powell, particularly around interest rate policy and the Fed’s stance on Trump’s proposed economic measures — such as tariffs and inflation control.
The Mar-a-Lago Meeting With Kevin Warsh
According to reports from Reuters and the Wall Street Journal, Trump met privately with former Fed Governor Kevin Warsh in February 2025 at Mar-a-Lago to discuss replacing Powell.
Warsh — once considered for the Fed Chair role during Trump’s presidency — was reportedly floated as a potential successor.
However, Warsh advised against firing Powell, warning that such an action could undermine the independence of the Federal Reserve and lead to market instability. He emphasized that Powell should be allowed to complete his term.
Legal and Political Implications
Under U.S. law, a Fed Chair can only be removed “for cause,” meaning serious misconduct or incompetence — not merely disagreements over policy. Legal experts, including past Treasury officials, have voiced concerns that attempting to fire Powell over policy differences could set a dangerous precedent.
Former Treasury Secretary Steven Mnuchin also reportedly opposed the move, cautioning that such interference could damage institutional credibility.
Market Reactions and Investor Sentiment
The potential dismissal of Powell has raised red flags among financial analysts and investors. Many see this as a threat to the central bank’s independence, which is essential for maintaining stable inflation, currency trust, and long-term market health.
Any attempt to politicize the Fed could trigger market volatility, a loss of confidence in U.S. economic policy, and even global financial ripple effects.
Conclusion
While Trump has not made any formal decision, the secret discussions signal a growing divide between political leadership and central bank policy.
As the 2024 election approaches and Trump positions himself for a potential return to the White House, the future of the Fed — and Jerome Powell’s role in it — may become a major political and economic flashpoint.