Trump Reignites Feud With Fed Chief Jerome Powell

As monetary decisions now dictate the pace of global markets, the White House is preparing to shake up the institutional chessboard. Donald Trump has announced that a change at the head of the Federal Reserve could be decided “very soon”. From Air Force One, he is directly reigniting his battle with Jerome Powell, against the backdrop of lasting disagreements over interest rates. By threatening the Fed’s independence, Trump revives an old rift, with major economic and political implications.

Trump reignites the battle against Powell : towards an institutional showdown?

After painting a bleak picture of the American economy in a recent speech, Jerome Powell has fueled Donald Trump’s anger, who accused him of hindering the recovery.

As he addressed journalists aboard Air Force One, the president announced that the appointment of a new leader at the head of the Federal Reserve would be “very soon” made official, opening a new chapter in their open confrontation.

At a conference held in Mar-a-Lago in August 2024, the president accused Powell of being “always too slow” in his decisions. Since his return to power, pressure has intensified, with an overt attempt to bypass the institutional safeguards that protect the central bank’s independence.

In April 2025, the Trump administration appealed to the Supreme Court to assert the right to dismiss leaders of independent federal agencies, a move perceived by observers as a targeted attack against Powell.

Here are the main highlights of this escalation :

• August 2024 : Trump publicly declared that U.S. presidents should have oversight on Fed policy, and that Powell acts “too late” ;

• April 2025 : filing a lawsuit with the Supreme Court to allow the executive branch to dismiss heads of independent agencies, potentially including Powell ;

• Shortly after : Trump states on Truth Social that “Powell’s end couldn’t come soon enough” ;

• June 2025 : aboard Air Force One, Trump declares that a decision on replacing the Fed chair is “about to be announced”.

These statements are part of a clear political will to impose a rapid interest rate cut.

Trump pointed out that the European Central Bank had already begun a monetary easing cycle and criticized the Fed for its inaction. By demanding an immediate turn in rate strategy, the president wants to align monetary policy with his economic priorities.

However, this stance is raising serious concerns. By seeking to reshape the Fed, Trump directly questions its independence, a fundamental principle of American economic governance for over a century.

Kevin Warsh, potential favorite : towards a Fed aligned with the presidential agenda?

In this tense context, one name keeps coming up persistently within circles close to the presidency: that of Kevin Warsh. Former Federal Reserve governor, Warsh is known for his critical stance towards the flexible monetary policies pursued in recent years.

When a journalist asked if he was considering appointing him as head of the Fed, Trump replied that Warsh was “highly respected”. This tacit endorsement could signal a radically different direction for the Fed. Warsh opposed the massive expansion of the central bank’s balance sheet, which he considers responsible for worsening federal debt and inflation surges.

Unlike Powell, who conducted several quantitative easing campaigns, Warsh favors a more restrictive approach. He believes support measures should be reserved for emergency situations, and that the Fed must avoid excessive market intervention.

His appointment would be seen as Trump’s attempt to regain control over monetary policy by imposing a more disciplined profile, less prone to preventive interventions. This course correction could reassure some economic actors concerned about debt but also create new uncertainties for financial markets, including cryptocurrencies particularly bitcoin.

As the clash between Donald Trump and Jerome Powell reaches its peak , a change at the head of the Fed in such a tense context could have multiple repercussions. In the short term, a rapid rate cut could energize crypto and stock markets. However, in the longer term, a Fed perceived as aligned with the executive power could weaken the credibility of U.S. monetary policy, fuel volatility, and trigger negative reactions from international institutions. In this game of influence with systemic implications, the Fed’s independence appears more than ever as a major strategic issue.