Overview

• On June 27, Trump publicly labeled Powell a “stubborn mule” and “stupid,” urging him to resign as Fed chair.
• He declared he will only appoint a nominee committed to cutting rates to 1% and is eyeing contenders including Scott Bessent, Kevin Warsh, Kevin Hassett, Christopher Waller and David Malpass.
• CNN and Wall Street Journal reports say Trump could announce his pick as early as this fall, creating a de facto “shadow” Fed chair before Powell’s term ends in May 2026.
• Investors drove the U.S. dollar to its lowest level in three years on fears that political meddling could destabilize monetary policy.
• Economists and former Fed vice chairs warn that overlapping leadership voices risk confusing markets, undermining central bank independence and provoking dissent on the FOMC.