- Trump is considering Kevin Warsh for Federal Reserve Chair, The Wall Street Journal reported.
- Trump has criticized Powell’s performance and says he has the authority to remove him before 2026.
- Warsh, a former Fed governor, advised against prematurely firing Powell, according to the Journal.
President Donald Trump wants to shake up the Federal Reserve, and he’s looking for the right person for the job.
According to The Wall Street Journal, Trump is considering replacing Jerome Powell as Chair of the Federal Reserve with Kevin Warsh, a former Fed governor.
The president has publicly expressed his dissatisfaction with Powell. Trump has privately discussed ousting Powell before his Fed term expires in May 2026, according to the Journal.
On Thursday, Trump slammed Powell in a Truth Social post, saying the Fed chair is “always TOO LATE AND WRONG” and that “Powell’s termination cannot come fast enough!” Also on Thursday, Trump told reporters in the Oval Office that he has the authority to fire Powell, despite Powell’s assertion that such a move is illegal.
“If I want him out, he’ll be out of there real fast, believe me,” Mr. Trump said.
Trump has already met with Warsh at Mar-a-Lago to discuss possibly replacing Powell before Powell’s term expires, according to The Journal, citing sources.
Warsh, 55, is a former Morgan Stanley banker who worked as President George W. Bush’s economic advisor from 2002 to 2006 and a Federal Reserve Board governor from 2006 to 2011. Warsh was instrumental in rescuing struggling banks following the 2007-2008 financial crisis, as well as shaping the country’s overall response to it.
Warsh also served on Trump’s second-term transition team and was one of the president’s top picks for Treasury Secretary before choosing Scott Bessent. During his first term, Trump considered Warsh for Fed Chair in 2017, but ultimately chose Powell.
Warsh, who studied public policy at Stanford University before attending Harvard Law School, has invested in crypto-related startups such as the now-defunct cryptocurrency platform Basis and the asset management platform Bitwise, which provides cryptocurrency index funds, according to Pitchbook.
In a 2022 op-ed for The Wall Street Journal, Warsh argued that cryptocurrency presents both “promise and peril for the American-led global financial system,” and urged the Federal Reserve to establish a central bank digital currency (CBDC) to compete with China’s digital yuan.
Warsh, a known financial hawk, has criticized the US’s growing debt, claiming in July that inflation is the result of “irresponsible government spending and excessive money printing.”
He is married to Jane Lauder, an Estée Lauder heir and the daughter of Ron Lauder, who sparked Trump’s interest in buying Greenland.
It’s unclear whether Warsh actually wants the job, and the financier did not immediately respond to Business Insider’s requests for comment.
According to The Journal, Warsh has advised Trump not to fire Powell prematurely and to allow him to serve out his full term.
The White House did not immediately respond to Business Insider’s request for comment.