The Federal Reserve is staring down a reckoning, and Jerome Powell is at the center of it. As President Trump reasserts America’s economic strength in his second term, the question hanging over Washington is whether Powell—a Biden-era relic—will do the right thing and step aside when his term as Fed Chair ends next May. So far, he’s refusing to say. And that silence speaks volumes.
Let’s be clear: Powell’s tenure has been a disaster. Inflation exploded under his watch, and when it finally came time to act, he responded late and sluggishly. President Trump has called him “Too Late Powell,” and he’s right. The American people got crushed by Bidenflation while Powell fiddled with academic models and waited for “transitory” inflation to vanish on its own. It didn’t.
Now, with inflation finally cooling and the economy demanding lower interest rates to spur growth, Powell continues to drag his feet. Trump wants a Chair who will cut rates decisively—someone who understands that economic strength and monetary policy must align. Powell, meanwhile, is clinging to his seat like a bureaucratic barnacle.
And here’s the kicker: even after Trump replaces him as Chair, Powell can legally remain on the Fed’s Board of Governors until 2028. That’s nearly the entirety of Trump’s second term. It’s not just unprecedented—it’s subversive. If Powell stays, Trump’s ability to reshape the Fed will be severely constrained. The seven-member Board would still have a Democrat-appointed majority, and the president’s power to appoint a true economic ally would be reduced to a single seat—maybe two, if Powell eventually steps down.
This isn’t just about personalities. It’s about policy. The Federal Reserve is one of the most powerful institutions in the country, arguably more so than Congress when it comes to economic impact. It sets interest rates, controls liquidity, and influences everything from mortgage rates to job creation. And right now, the Fed is still dominated by Biden-era appointees who were more worried about climate change and “equity” than stabilizing the dollar.
Sound familiar? This is déjà vu of the 1948-1951 clash between President Harry Truman and Fed Chair Marriner Eccles. Truman tried to replace Eccles, who refused to leave. The result was a historic standoff that ended in the 1951 Fed-Treasury Accord, a defining moment for central bank independence. But let’s not romanticize it—Eccles stayed to block the president’s agenda. Powell could do the same.
President Trump is right to approach the situation strategically. He’s reportedly considering a short-term appointment to the soon-to-be-vacant seat of Governor Adriana Kugler, buying time to install a longer-term ally when the political terrain is clearer. But the clock is ticking. If Powell stays on, Trump may be forced to choose a new Chair from existing governors—limiting his options to people already inside the institution, like Christopher Waller or Michelle Bowman.
Waller is a solid pick. He dissented at the Fed’s last meeting, saying he would’ve cut rates. That’s the kind of thinking we need—decisive, pro-growth, and in sync with Trump’s economic vision. But if Trump wants to go outside the current board—to someone like Kevin Warsh, Kevin Hassett, or Judy Shelton—he’ll need Powell to vacate not just the chairmanship, but the Board seat itself. Otherwise, the numbers just don’t work.
Let’s not sugarcoat it: Powell staying on would be a political act, cloaked in the language of “independence.” And make no mistake, the Left would cheer it. They know Powell remaining would keep Trump from fully realigning the Fed with his America First economic agenda. That’s why the media isn’t pushing him to go—they’re quietly hoping he stays.
But this isn’t Powell’s Fed anymore. He was given a chance to lead, and he failed. The inflation crisis, the rate hikes, the missed signals—all happened under his watch. Now it’s time for a new direction, a new Chair, and, ideally, a new Board. If Powell has any respect left for the institution he claims to serve, he’ll step aside and let the duly elected president chart the path forward.
The American people voted for change. They voted for economic revival. And that means putting an end to the Powell era—whether he likes it or not.
