Trump has talked to former Fed Governor Kevin Warsh about firing Powell, report says

Kevin Warsh, the former governor of the US Federal Reserve, was at The Semafor World Economy Summit in Washington, DC, US on Thursday, April 18, 2024. President Donald Trump has reportedly discussed with Warsh the possibility of Warsh replacing Jerome Powell as the central bank chairman before Powell’s term ends. The Wall Street Journal reported that Warsh advised Trump against firing Powell or interfering with his tenure, which is set to expire in May 2026. Trump had conversations with Warsh at his home and in Florida as recently as February, while others have also discussed the idea of removing Powell as early as early March. Trump has been critical of Powell for not lowering interest rates and has expressed his desire for Powell to be replaced. Powell has stated that the president does not have the authority to dismiss him under the law. Trump’s actions have raised concerns, even among some of Powell’s critics, such as Sen. Elizabeth Warren, who cautioned that undermining the Fed’s independence could have serious consequences for US markets.