Powell Under Pressure as White House Eyes Fed Shake-Up

The Trump administration is making it increasingly clear: they want Jerome Powell out—not just as Federal Reserve Chair, but off the Board of Governors entirely.

Speaking with Yahoo Finance, Deputy Treasury Secretary Michael Faulkender said he hopes Powell steps down once his term as chair ends in May 2026, following the tradition of exiting both roles. The message? It’s time for a fresh face—and a fresh monetary approach.

A Chair Exit—and a Bigger Power Play
While Powell hasn’t confirmed whether he’ll stick around after his chairmanship ends, the administration is already scheming its next move. Fed Governor Adriana Kugler is scheduled to depart at the end of January, opening a seat Trump could use to position a potential successor.

Enter Kevin Hassett, Trump’s former economic adviser. He’s reportedly already spoken to the former president twice about the job and is being floated for an initial board appointment, which could conveniently set him up for a promotion to Fed Chair.

Other names in the mix? Treasury Secretary Scott Bessent and former Fed governor Kevin Warsh, both of whom have been publicly critical of the Fed’s current trajectory.

The White House Wants Rate Cuts—Now
Behind all this maneuvering is one goal: lower interest rates. Trump has been vocal in pushing Powell to ease monetary policy, and Faulkender echoed that sentiment, arguing the U.S. rate environment looks high compared to other countries. “There’s cause for bringing interest rates down,” he said, suggesting inflation isn’t the economic menace it once was.

Meanwhile, Fed meeting minutes released this week showed most members still see a case for cuts this year—though only “a couple” support a cut as early as this month. Trump-appointed governors like Michelle Bowman and Christopher Waller have joined the chorus, saying they see a path to easing as soon as July’s meeting.

Bottom Line
​Powell’s seat is still warm, but the White House is already building the scaffolding for a Fed makeover. From succession plans to aggressive calls for rate cuts, it’s clear Trump wants more than a new chair—he wants a central bank that dances to his tune. And the clock’s ticking.