Fed Chair Drama Heats Up as Trump Urges "Jerome Powell Out" Immediately

The administration of President Donald Trump is pressing for an accelerated change in the leadership of the United States Federal Reserve. US Treasury Secretary Scott Bessent has emphasised that Trump’s chosen candidate, Kevin Warsh, is expected to take up the position of Fed Chair as soon as possible. “We want Kevin Warsh to assume the role immediately,” Bessent told reporters on the sidelines of an Institute of International Finance event in Washington, as quoted by AFP on Wednesday (15/4/2026). Warsh is projected to replace Jerome Powell, whose term ends in May. However, the Senate confirmation process is not expected to proceed smoothly. Senate Banking Committee Chairman Tim Scott indicated that Warsh’s hearing could be held next week, followed by a vote. On the other hand, Republican Senator Thom Tillis stated he would block the confirmation until legal issues involving the Fed are resolved. Bessent acknowledged these obstacles but remained optimistic. “I think we’ll let this play out. There’s an agreement for the hearing,” he said. He also added that Tillis is ultimately a “reasonable person.” Pressure on the Fed has intensified following an investigation by the US Department of Justice into the costs of renovating its Washington headquarters under Powell’s leadership. Previously, a federal judge overturned a subpoena in that case, citing “a multitude of evidence” suggesting the probe was politically motivated. When asked if he was involved in efforts to halt the investigation, Bessent asserted, “I do not control the Department of Justice’s investigations.” Nevertheless, he remains confident that Warsh will occupy the Fed Chair position. Amid this uncertainty, Bessent also touched on the direction of the Fed’s interest rate policy. He believes the central bank has leeway to observe before cutting the benchmark rate. “They can watch before they cut rates. I believe interest rates should be lowered,” he stated firmly. However, he understands if policymakers opt to wait for clarity on global conditions, including until Warsh officially assumes the role to lead the next policy cycle. Since returning to the White House in January 2025, Trump has consistently pressured the Fed to cut interest rates promptly. He has even criticised Powell several times for being too slow in easing monetary policy.