In this article: Trump wants Kevin Warsh to become chairman of the Federal Reserve when Jerome Powell's term ends in 2026, with Warsh as Treasury Secretary. If the president-elect and Powell don't get along and Powell doesn't cut interest rates fast enough, their fight over interest rates could start up again.
the markets are on edge, especially since inflation is still floating, as the Fed may not cut interest rates as much as people thought. Donald John Trump, who will soon become the 47th president, has already made plans for his economic dream team, and Fed Chairman Jerome Powell is not one of them.
it is reported that Trump is looking to replace Powell when his term ends in 2026, and Kevin Warsh's name is at the top of his list.
Walsh is a former Federal Reserve chairman and Wall Street bigwig, and he met with Trump at Mar-a-Lago this week. According to insiders, the plan calls for Warsh to first become Treasury Secretary and then move to the top post at the Federal Reserve.
the agreement is not final, but Warsh is one of the top contenders. 1 Mark Rowan, CEO of Apollo Global Management, and Scott Bessent, a hedge fund manager, are also being considered for senior economic positions.
one scenario suggests that Bessent would head the National Economic Council and become Treasury Secretary, so that Warsh could take Powell's place at the Fed.
"President-elect Trump is making decisions about who will serve in his second administration, said Carolyn Levitt, a spokeswoman for Trump's transition team. "He will announce when those decisions are made
Trump and Powell have a complicated history. He nominated Powell for chairman of the Federal Reserve Board in 2018, but their relationship didn't immediately collapse. Trump wanted aggressive rate cuts to spur economic growth, but Powell refused to play along.
The altercation became public, and Trump repeatedly criticized Powell on Twitter and in his speech. Powell, for his part, stuck to his opinions, emphasizing the independence of the Federal Reserve.
Now Trump is coming back for revenge.
If Warsh becomes Fed chairman, expect major policy changes.
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