Who could replace Jay Powell as Fed chair – Here are Trump’s requirements

Trump’s biggest regret now is seemingly having appointed Jerome Powell as the Feds chair during his first term. However, he is confident that if he wants Powell out, “he’ll be out of there real fast.” 

Lately, Trump has been more angered by Powell for not lowering interest rates. To that end, if Trump fires Powell, who is the ideal replacement based on Trump’s needs?

Trump has a list of demands for a Fed chair. In short, he wants someone who will do as he says. However, taking away the Fed’s independence will tamper with its functionality.

By the look of things, Powell has refused to play ball with Trump over tariffs and claims to be observing what Trump is doing. Meanwhile, the US economy is showing signs of stagnation. Trump is okay with markets crashing, but a recession is not what he signed up for.

A source close to the administration says that former Fed governor Kevin Warsh is the front-runner, followed by National Economic Council Director Kevin Hassett, Reagan-era economist Art Laffer, and economist and TV host Larry Kudlow, who was NEC director during Trump’s first term. 

Fed’s top candidates for chairman

Trump requires a Fed chairman who supports tariffs and will be ready to lower rates when needed. Powell’s take on tariffs is that Trump’s tariff policies risked pushing inflation and employment further from the central bank’s goals. 

On the other hand, the front-runner of the Fed’s chair, Kevin Warsh, thinks that tariff policies have less of an effect on inflation than deregulation and spending cuts. 

In addition, Kevin Hassett is a tariff supporter, and he has publicly said that tariffs are working because companies are moving back to the US. He also said there is no chance that the US will experience a recession in 2025.

Like the others, Art Laffer believes that President Trump’s tariffs and the trade talks that come from them would be good for both the US and the rest of the world.  Larry Kudlow is also for tariffs. He recognizes that the US has been a victim of tariffs and that it is time to fight back. 

Fed governor Christopher Waller could also be considered a suitable candidate. Unlike Powell, he thinks tariffs will only temporarily affect inflation. Waller recently gave a speech in which he said the central bank might need to lower interest rates to avoid a recession. He also said that economic growth could “slow to a crawl” if tariffs stay high.

Kevin Warsh leads in the Polymarket Fed’s next chair prediction

Kevin Warsh appears to be the most suitable person to take Powell’s place. He served the Fed during the financial chaos of 2008. He leads the predictions with 37%, while others follow with less than 10%.

However, the Wall Street Journal reported that Trump talked to Warsh about removing Powell in February and March, but Warsh told the president not to do anything until Powell’s term ends in May 2026.

Trump was also told not to fire Powell too soon by Treasury Secretary Bessent. Last week, Bessent said the government would begin interviewing candidates to replace Powell “sometime in the fall.” He also said, “Fed monetary policy is a jewel box that needs to be kept safe.” In support, 41% predict that Powell will not be replaced until the end of his tenure.

On the other hand, a Trump adviser named Steve Moore said it’s barely 50/50 that Trump could fire Powell. But he still thinks the president should be able to do it.

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