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Central BanksMedium•18 April 2026•

1 min read

Trump Backs Kevin Warsh for Fed Chair Amid Escalating Threats to Oust Powell

Two men, Jerome Powell and another, in suits, with Federal Reserve building, US flag, gold, coins, and financial charts.

Key Facts

1President Trump is backing Kevin Warsh to take over as Federal Reserve Chair.

2Increased pressure on Jerome Powell to resign amid threats from Trump to remove him.

The conflict between President Donald Trump and the Federal Reserve has reached a new peak as Trump publicly endorsed Kevin Warsh to succeed Jerome Powell as Chair. This endorsement coincides with intensifying pressure on Powell to resign, fueled by Trump’s repeated threats to remove him from his position. Trump’s push for a leadership transition aims to align monetary policy more closely with his administration's economic agenda, raising concerns over the Fed's institutional independence. Meanwhile, discussions are reportedly ongoing in Congress regarding the timeline for the CLARITY Act, which could further impact the regulatory landscape. Market analysts suggest that this political friction introduces significant uncertainty, potentially triggering volatility in the U.S. Dollar and Treasury yields. Investors remain highly sensitive to any developments that could undermine the central bank's autonomy in the coming months.