Trump said he will soon replace Fed Chair Jerome Powell and named Kevin Warsh as a likely successor

Donald Trump told reporters aboard Air Force One on Friday that a decision on who will lead the Federal Reserve is “coming out very soon,” according to Reuters.

The president said he’s no longer willing to keep Jerome Powell in the job and confirmed that Kevin Warsh, a former Fed governor, is now being strongly considered to take over. “He’s very highly thought of,” Trump said when asked directly about Kevin.

Trump made it clear he’s done waiting for Powell to move on interest rates. He said a good Fed chair would have already acted to cut borrowing costs. He’s calling for a full percentage point cut and believes Powell is making things worse by stalling.

“Very Simple!!! He is costing our Country a fortune,” Trump posted on Truth Social. He said borrowing costs “should be MUCH LOWER!!!”

The two met face-to-face last week for the first time in months. During that conversation, Trump said he told Powell straight up that he was making a “mistake” by not moving faster on cuts. Trump is now pushing harder than ever to bring in someone who’ll follow his direction—and Kevin is the frontrunner.

Trump pushes for 1-point rate cut despite strong jobs numbers

The same day Trump floated firing Powell, the Bureau of Labor Statistics reported that the US added 139,000 jobs in May, higher than the 125,000 Dow Jones had expected. But the stronger report didn’t change Trump’s tone. “Go for a full point, Rocket Fuel!” he wrote online. He said the Fed needs to move fast, no matter what the employment numbers show.

Trump argues that interest rates need to drop across the board. He says it would lower both short-term and long-term debt costs. “On debt that is coming due,” he wrote, America is paying too much. He also pointed out that other countries are cutting their rates, while the Fed under Powell has stood still.

The European Central Bank had just lowered its key rate by a quarter point—the eighth cut since last June. They said it would probably be their last one this year, citing weaker growth and slowing inflation. Trump brought this up and said the US should be doing the same. He says Powell’s refusal to act is hurting the country.

Despite Trump’s demands, markets see almost no chance of a cut at the next Federal Open Market Committee meeting this month. The last time the Fed made a 1-point cut all at once was in March 2020, when COVID-19 hit the economy. During Joe Biden’s final year in office, the Fed reduced rates by a full point—but in smaller steps.

Trump says he’s not impressed. He insists that the Fed needs to act now, and he’s ready to remove Powell if that doesn’t happen soon. He’s publicly berated him more than once, but this is the first time he’s openly said who might replace him.

Warsh stays quiet, Powell takes the heat

Kevin hasn’t said anything publicly about the possibility of returning to the Fed. But Trump’s praise puts him in the spotlight. Kevin served as a Fed governor from 2006 to 2011 and has stayed active in policy circles since then. He’s viewed as someone who would be more responsive to Trump’s direction than Powell has been.

Inside the White House, Trump has continued to criticize Powell for acting too slowly. “Too Late at the Fed is a disaster!” he posted. He also said the economy is doing well “despite him.” That’s been a constant message—Trump believes the Fed is dragging things down instead of helping.

Powell has said he’s trying to balance the risk of inflation, especially as Trump’s tariff policies raise costs on imports. But Trump doesn’t care. He says what matters is making credit cheaper across the board. He’s not just asking anymore—he’s threatening to act.

Kevin now looks like the guy who could replace Powell if Trump doesn’t get the cuts he wants. Trump hasn’t said exactly when he’ll announce the decision, but he said it’s “very soon.” If Powell doesn’t move, Kevin might be stepping into his office.

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