Trump Considers Replacing Jerome Powell
Analysis based on 6 articles · First reported Dec 29, 2025 · Last updated Dec 30, 2025
The potential replacement of Jerome Powell as United States — Federal Reserve Chair by Donald Trump introduces significant uncertainty into the United States' monetary policy, potentially leading to more aggressive interest rate cuts. This could impact bond markets, mortgage rates, and the overall economic outlook, causing volatility in financial markets.
Donald Trump has indicated he has a preferred candidate for the next Chair of the United States — Federal Reserve, to be announced in January, while also expressing a desire to fire current Chair Jerome Powell. Trump has been a long-time critic of Jerome Powell, advocating for more aggressive interest rate cuts to lower mortgage costs. He is also considering a 'gross incompetence' lawsuit against Jerome Powell related to a renovation project at the United States — Federal Reserve. This situation creates uncertainty regarding the future leadership and monetary policy direction of the United States — Federal Reserve, with potential candidates including Kevin Hassett, Kevin Warsh, Christopher Waller, Michelle Bowman, and Rick Rieder.
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