Push for Rate Cuts Fuels Speculation Over Powell’s Successor

Kevin Warsh, a former member of the Federal Reserve’s Board, has become a key figure in speculation about who might lead the U.S. central bank next.

As talk swirls around a potential shakeup at the Fed, Donald Trump has hinted that a decision on Jerome Powell’s replacement could be announced soon.

Although Powell’s term runs until May 2026, Trump has expressed dissatisfaction with his leadership—particularly over interest rate policy. Trump recently pushed for a full percentage point rate cut, accusing Powell of harming the economy and labeling him a “disaster.”

Warsh’s name has resurfaced as a possible successor, with prediction markets like Polymarket giving him a 24% chance of being tapped if a new appointment happens this year. However, more than half of the traders still believe no change will be made before year’s end.

While Trump may want a new direction at the Fed, a recent Supreme Court ruling reaffirmed that the U.S. president cannot directly remove the Fed Chair, making any near-term replacement unlikely unless Powell resigns.

Despite the legal barriers, Trump’s comments suggest a desire to install a Fed leader more aligned with his push for lower interest rates—making Warsh a name to watch as election season heats up.

Alexander Stefanov

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