Trump Is Teasing A Fed Shake Up And Powell Is Back In The Crosshairs

​The chair is still warm and Trump is already hovering
Just when markets thought the Fed drama might cool off for the holidays, it got a fresh jolt. Trump is signaling he already has a favorite to lead the Federal Reserve next — but he’s dragging out the reveal like it’s a season finale. Meanwhile, he’s also floating the idea that Jerome Powell shouldn’t just finish his term… he should leave early.

He’s not just complaining he’s threatening
Trump didn’t hide the ball: he said Powell “should resign,” repeated that he’d “love” to fire him, and even hinted he might still try. This isn’t the first time he’s flirted with that idea — he came close earlier in the year but backed off after markets reacted badly. Now the message is basically: I remember that, and I still might do it anyway.

The shortlist is stacked and very political
As for who takes the wheel next, Trump wouldn’t name names, but the usual suspects are circling: Kevin Hassett, Kevin Warsh, Fed governors Christopher Waller and Michelle Bowman, and BlackRock’s Rick Rieder. Trump has also been wildly inconsistent — at one point implying the field was down to one person, then later acting like he’s still shopping.

This isn’t just personal it’s about rates
Underneath the insults and suspense is the real fight: interest rates. Trump has made it clear he wants more aggressive cuts — especially with mortgages and borrowing costs still a sore spot. The Fed has already cut rates at its last three meetings, but policymakers have signaled they may only cut once in 2026. That gap between what Trump wants and what the Fed is signaling is exactly where the sparks come from.

The twist is Powell might not fully leave
​Even if Powell’s term as chair ends in May 2026, his seat as a Fed governor runs until 2028. If he stays on the board, Trump can’t immediately replace him with a new appointment. So the pressure campaign isn’t just about removing Powell — it’s about control, timing, and whether the next Fed era is guided by policy… or by politics.