Former U.S. President Donald Trump wants to replace Federal Reserve Chair Jerome Powell before his term ends in 2026. His frustration with Powell has grown, and now he is exploring new leadership options for the central bank.

Trump Privately Plans Powell’s Removal

For several months, Trump has privately discussed removing Powell. He met with his advisors multiple times about the issue. Two key meetings took place at his Mar-a-Lago resort in February and March. During these talks, Trump considered Kevin Warsh, a former Fed governor, as a possible replacement.

Trump Publicly Criticizes Powell

Trump has openly attacked Powell’s decisions. On Truth Social, he wrote, “Powell is always TOO LATE AND WRONG.” He also said, “Powell’s termination cannot come fast enough!” Later, at a media event, Trump added, “If I want him out, he’ll be out of there real fast, believe me.”

However, firing Powell may not be easy. The Federal Reserve Act of 1913 states that a Fed chair can only be removed “for cause.” Powell believes this law protects him, and most legal experts agree.

Even so, Trump has challenged legal boundaries before. According to reports, his advisors have even discussed taking the case to the Supreme Court if necessary.

Kevin Warsh: Trump’s Top Candidate

Kevin Warsh has become a leading contender for the Fed job. He has met privately with Trump several times, including earlier this year. Although Warsh reportedly advised Trump not to remove Powell early, his experience and views make him a strong candidate in a second Trump term.

Warsh served as a Fed governor from 2006 to 2011. He played a key role during the 2008 financial crisis. He acted as the Fed’s main contact with big Wall Street firms and represented the U.S. at global forums like the G-20.

Before his Fed role, Warsh worked at Morgan Stanley in the mergers and acquisitions division. Later, he joined the White House as Special Assistant to the President for Economic Policy. He also worked as Executive Secretary of the National Economic Council.

Currently, he works at Stanford University’s Hoover Institution. He also lectures at Stanford’s Graduate School of Business and advises the Congressional Budget Office. Warsh is a member of the Group of Thirty, a network of international finance experts.

Warsh’s Views on Policy and the Fed

Warsh holds strong views on monetary and fiscal policy. In a 2022 Wall Street Journal article, he warned that cryptocurrency brings both “promise and peril for the American-led global financial system.” He urged the Fed to explore its own digital currency to compete with China’s digital yuan.

He also blamed inflation on too much government spending and excessive money printing. He wrote, “A government that spent too much and a central bank that printed too much.”

While most economists blame inflation on supply chain issues during the pandemic, Warsh’s views appeal to fiscal conservatives. He also believes the Fed should stay politically neutral. He criticized the central bank for considering political events—such as Trump’s policies—while forming its economic outlook.

In a March interview with Fox Business, Warsh defended Trump’s policies. He said, “The president inherited a fiscal and economic and regulatory mess.” On inflation, he added, “Inflation is a choice, and the Fed has made a lot of bad choices over these last several years.” He suggested that “the president has to take matters into his own hands and try to kill inflation by reducing government spending.”

Warsh’s Links to Trump’s Circle

Trump nearly picked Warsh as Fed Chair in 2017. Later, Warsh helped with Trump’s transition planning and was considered for Treasury Secretary. Trump eventually chose Scott Bessent instead. Recently, Bessent said they would begin reviewing candidates to replace Powell in the fall.

Warsh also has personal ties to influential Trump supporters. He is married to Jane Lauder, granddaughter of beauty mogul Estée Lauder and a senior executive at Clinique. His father-in-law, Ronald Lauder, is a major Republican donor. He reportedly influenced Trump’s unusual idea of buying Greenland.

Warsh’s Background and Education

Kevin Warsh was born on April 13, 1970, in Albany, New York. He grew up in Loudonville and graduated from Shaker High School. He earned his public policy degree from Stanford University in 1992, focusing on economics and political science. Then, he earned his law degree from Harvard in 1995 with honors. He also took finance and market economics courses at MIT Sloan and Harvard Business School. In 2009, Fortune Magazine named him to its “40 Under 40” list. Many see him as a smart technocrat with experience in managing economic crises. Warsh also invested in financial technology and cryptocurrency projects. He backed Basis, a now-defunct crypto platform, and Bitwise, a company that offers crypto index funds.