Powell's Future in Suspense: Trump's "Waiting and Seeing" and the Battle Between Two Kevins

Trump recently made it clear that he currently has no plans to directly remove Federal Reserve Chair Powell.

But he also added that he is in a “slightly watchful mode” and emphasized that the president should have a say in the central bank’s policies. This statement temporarily puts a comma, rather than a period, on recent speculation about the highest leadership of the Federal Reserve.

According to Reuters, when asked in an interview at the White House whether he would replace Powell, Trump gave a negative answer. However, he also pointed out that it is too early to judge whether to use an ongoing investigation as a reason for removal.

Trump reiterated that, with his extensive business profit experience, he understands the economy better than “the late Powell.” Currently, the relationship between the government and the Federal Reserve is becoming increasingly tense. Powell previously revealed that the Fed has received a grand jury subpoena related to an investigation of a renovation project.

In response, Trump said that although some Republican senators are worried that the Justice Department’s investigation might interfere with interest rate decisions, he does not care and emphasized that Republicans “should be loyal.”

Meanwhile, the process of finding Powell’s successor is accelerating. Powell’s term will expire in May. Trump praised White House economic advisor Kevin Hasset and former Fed director Kevin Wirth. He said he would announce related decisions “in the next few weeks.”

According to federal law, Federal Reserve directors can only be removed “for just cause,” and policy disagreements do not constitute grounds. The current investigation into the Fed’s renovation project has sparked a new round of market concerns about the central bank’s independence.

In a recent statement, Powell called this investigation an excuse to pressure interest rate policies. He emphasized that the core issue is whether the Fed can continue to set interest rates based on evidence and economic conditions, rather than succumbing to “political pressure or intimidation.”

Despite threats from Republican senators to block Fed nominations until the investigation is resolved, Trump said he would continue to push forward with the nomination process. Facing doubts within the party about the motives of the investigation, he straightforwardly said in an interview, “I don’t care. There’s nothing to say.”

Regarding the successor, Trump did not hide his preferences. He commented, “Both Kevins are very outstanding.” He added that although there are other excellent candidates, a decision will be officially announced soon.

Talking about the upcoming midterm elections, Trump expressed optimism about the Republican prospects but also acknowledged that historical patterns are unfavorable to the ruling party. He pointed out that over the past sixty-five years, only a very few presidents have won midterm elections. He described this historical norm as an unbreakable “lock.”

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