This is one of those legal and political entanglements that Donald Trump has a knack for creating. The United States Federal Reserve risks being left without a chair at the end of Jerome Powell’s term on May 15 if the standoff among Republicans does not find a swift resolution. An empty seat at the helm of the central bank would be entirely unprecedented. This despite Kevin Warsh, the nominee put forward by the US president in January, appearing on paper to have every reason to secure the support of senators during his confirmation hearing on Tuesday, April 21.
Let’s rewind. Since the start of his second term, in January 2025, Trump has repeatedly criticized Powell. Even though the Republican was first nominated by Trump in 2018 – he was reappointed for a second term by Joe Biden in 2022 – the White House has been unhappy with his decisions.
Powell has pursued a cautious monetary policy, while Trump wants to see the central bank’s key interest rates lowered to support the American economy. He has defended the Fed’s independence, while Trumpism operates on the logic of total allegiance. Finally, he has maintained unshakeable composure, while the president relishes confrontation above all else.
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