Administration

Trump considered former Fed governor for Powell’s job: report

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President Trump reportedly considered replacing Federal Reserve Chairman Jerome Powell with Kevin Warsh, a former governor of the Federal Reserve, late last year.

Axios, citing two sources who discussed the matter with Trump, reported Wednesday that the president discussed the possibility of replacing Powell, but ultimately chose not to make the move.

{mosads}Warsh was on Trump’s shortlist in 2017 before he nominated Powell at the recommendation of Treasury Secretary Steven Mnuchin, according to Axios. Warsh was a member of the board of governors for the Federal Reserve System from 2006 through 2011 and was a Fed representative to the Group of 20.

Powell, who was nominated to the Fed by former President Obama, was confirmed to a four-year term as chairman of the Fed board by the Senate in January 2018.

Trump on numerous occasions has publicly criticized Powell and the Fed for raising interest rates, blaming the hikes for dips in the stock market.

“Had the Fed not mistakenly raised interest rates, especially since there is very little inflation, and had they not done the ridiculously timed quantitative tightening, the 3.0% GDP, & Stock Market, would have both been much higher & World Markets would be in a better place!” Trump tweeted last week.

Trump also reportedly considering firing Powell last year, though Powell asserted publicly that he didn’t believe Trump has the authority to do so.

Tags Donald Trump economy Fed Steven Mnuchin Treasury Trump Cabinet
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