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Trump Intensifies Campaign to Replace Powell, Says He Has Pick and Threatens Bessent Over Rates

A formal search led by Treasury Secretary Scott Bessent targets a decision by Christmas, with legal constraints still shielding Powell’s term through May 2026.

Overview

  • Speaking at a U.S.–Saudi investment forum, President Trump called Jerome Powell “grossly incompetent,” said he has “real mental problems,” and declared he would “love to fire his ass.”
  • Trump told reporters he already knows his preferred successor, even as Bessent continues a vetted process that has narrowed contenders to Christopher Waller, Michelle Bowman, Kevin Warsh, Kevin Hassett and Rick Rieder.
  • Bessent said the White House plans another interview round after Thanksgiving, with the president set to meet three finalists in mid-December and an announcement targeted before Christmas.
  • Trump publicly warned Bessent to get rates “fixed fast” or be fired, while also acknowledging Bessent has urged him not to remove Powell before his term ends; Trump said Commerce Secretary Howard Lutnick favors ousting Powell.
  • Any attempt to remove Powell early would face legal and market hurdles given the Fed’s independence, and prediction markets have recently elevated Hassett as a leading favorite for the job.