Trump Critique Powell and prepare a possible dismissal

While monetary decisions are now dictating the world market tempo, the White House is preparing to shake the institutional chessboard. Donald Trump announced that a change at the head of the federal reserve could be decided “Very soon”. From Air Force One, he spokes up his standoff with Jerome Powell, against the backdrop of lasting disagreements on rates. By threatening the independence of the Fed, Trump revives an old fracture, with major economic and political implications.

Trump relaunches the battle against Powell: towards an institutional showdown?

After drawing up a blackboard of the American economy in a recent speech, Jerome Powell rekindled Donald Trump's anger, who accused him of slowing down the recovery.

While he was addressed to journalists on board Air Force One, the president announcement that the appointment of a new leader at the head of the federal reserve would be “Very soon” formalized, opening a new chapter in their open confrontation.

At a conference held in Mar-A-Lago in August 2024, the president accused Powell of being “Always too slow” in his decisions. Since his return to power, the pressure has intensified, with an assumed attempt to bypass the institutional safeguards which protect the independence of the Central Bank.

In April 2025, the Trump administration seized the Supreme Court to assert the right to revoke leaders of independent federal agencies, an approach perceived by observers as a targeted attack on Powell.

Here are the main significant facts of this climbing:

• August 2024: Trump publicly declares that the American presidents should have a right of way on the policy of the Fed, and that Powell acts ” too late “;

• April 2025: filing of an appeal to the Supreme Court to allow the executive to revoke the leaders of independent organizations, of which Powell potentially;

• Shortly after: Trump affirm On social social than “The end of Powell cannot arrive too early”;

• June 2025: on board Air Force One, Trump declares that a decision on the replacement of the president of the Fed is “About to be announced”.

These declarations are part of an assertive political will to impose a rapid drop in interest rates.

Trump stressed that the European Central Bank had already hired a monetary relaxation cycle, and criticized the Fed for its immobility. By demanding an immediate turning point in the rate strategy, the president wants to align monetary policy with his economic priorities.

However, this posture triggers serious worries. By trying to reshape the Fed, Trump headlines its independence, a fundamental principle of American economic governance for more than a century.

Kevin Warsh, potential favorite: towards a Fed aligned with the presidential agenda?

In this tense context, a name insistently comes up in circles close to the presidency: that of Kevin Warsh. Former governor of the federal reserve, Warsh is known for his critical position vis-à-vis flexible monetary policies carried out in recent years.

When a journalist asked him if he planned to appoint him to the head of the Fed, Trump replied that Warsh was “Very respected”. This tacit support could point out a radically different orientation for the Fed. Warsh opposed the massive expansion of the central bank's assessment, which he deems responsible for the worsening of the federal debt and the inflationary outbreak.

Unlike Powell, which has carried out several quantitative softening campaigns, Warsh is in favor of a more restrictive approach. He considered that support measures must be reserved for emergency situations, and that the Fed must avoid excessive intervention on the markets.

His appointment would be perceived as an attempt by Trump to regain control of monetary policy by imposing a more disciplined profile, less inclined to preventive interventions. This CAP rupture could reassure certain economic players concerned with debt, but also create new uncertainties for financial markets, including for cryptos in particular Bitcoin.

While the confrontation between Donald Trump and Jerome Powell reaches his highest point, a change at the head of the Fed in such a tense context could have multiple repercussions. In the short term, a rapid drop in rates could boost crypto and stock markets. However, in the longer term, a Fed perceived as aligned with the executive power could weaken the credibility of American monetary policy, fuel volatility and trigger negative reactions from international institutions. In this game of influence with systemic implications, the independence of the Fed appears more than ever as a major strategic issue.