Trump Cautions That Powell May Not Be ‘Very Pleased’ If He Remains at the Fed

Trump Warns Powell About Remaining at the Fed

During an interview with CNBC in Davos, Switzerland, former President Donald Trump hinted that Jerome Powell might face an unpleasant experience if he chose to stay on the Federal Reserve’s Board of Governors after his term as chair concludes. Trump, who has been actively seeking a new leader for the central bank, remarked, “We’ll see how it all works out.” When asked about Powell potentially remaining on the board until 2028, Trump cautioned, “If that happens, I don’t think his life will be very, very happy.”

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The Trump administration has escalated its conflict with the current Fed chair, issuing subpoenas that suggest a potential criminal investigation into the renovation of the central bank’s Washington headquarters. Powell has strongly criticized the inquiry, calling it an attempt at “political pressure,” fueling speculation that he may opt to remain on the board even after his term as chair ends in May.

If Powell does stay, he would likely continue to play a significant role in shaping policy at the Federal Reserve, the world’s most influential central bank.

Photographer: Al Drago/Bloomberg

Search for a New Fed Chair Nears Its End

Trump’s efforts to find a replacement for Powell appear to be reaching a conclusion. On Wednesday, he indicated that the list of candidates has been narrowed down, describing the process as a “four-person race.”

“I’d say we’re down to three, but we’re down to two, and I probably can tell you we’re down to maybe one in my mind,” Trump commented.

The final contenders reportedly include Rick Rieder from BlackRock Inc., National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller, and former Fed governor Kevin Warsh. Treasury Secretary Scott Bessent has led the search process.

Although Hassett was once considered the leading candidate, Trump recently expressed concerns that moving him to the Fed would deprive the administration of a key voice on economic matters, a sentiment he reiterated this week. “I actually like keeping him where he is,” Trump said.

Rieder, who serves as BlackRock’s chief investment officer for global fixed income, is said to be gaining traction, with some insiders noting he may be easier to confirm.

However, the administration’s subpoenas to the Fed could complicate the confirmation process for any nominee. Senator Thom Tillis, a Republican member of the Senate Banking Committee, has pledged to block any Fed nomination until the investigation is resolved.

Trump Responds to Confirmation Concerns

In the CNBC interview, Trump dismissed worries about the potential confirmation roadblock, responding to questions with a casual “whatever.”

Regarding Senator Tillis, who is not running for reelection this year, Trump remarked, “He’s not going to be a senator too much longer.”

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