Trump criticizes Fed Chair Powell, looking to replace him, potentially undermining Fed independence.

From CNBC: 2025-06-26 14:19:00

President Trump continues to criticize Federal Reserve Chair Jerome Powell, calling him “terrible” and “stupid.” Trump has a list of potential successors for Powell, including Treasury Secretary Scott Bessent and former World Bank President David Malpass. The move could undermine the Fed’s independence and politicize monetary policy.

Trump’s desire to name a new Fed chair is complicated by the lack of immediate vacancies. The Fed has recently made changes to banking regulations, including easing reserve capital requirements for big banks. Despite Trump’s criticism, Fed officials maintain that political pressures do not influence decision-making. Chicago Fed President Goolsbee stated that the naming of a shadow chair would not impact policy decisions.

Read more: Trump’s war against the Powell Fed has taken another political turn