Overview

• Trump declared that rates should be slashed to between 1 percent and 2 percent, accusing Powell of artificially keeping borrowing costs high.
• He warned he will only name a successor aligned with his push for immediate cuts, signaling an early nomination despite Powell’s ongoing term.
• Some White House officials have floated installing a "shadow" Fed chair to undercut Powell’s authority and shape policy from the sidelines.
• Reported contenders for the next Fed chair include Scott Bessent, Kevin Warsh, Kevin Hassett and Christopher Waller.
• A recent Supreme Court ruling and the Federal Reserve’s charter bar removal of a chair without cause, securing Powell through May 2026.