• Trump tells Reuters he has no current plans to fire Powell despite DOJ investigation
• Kevin Warsh and Kevin Hassett emerge as frontrunners for Fed chair nomination
• President dismisses concerns about central bank independence saying “I don’t care”

WASHINGTON, DC (TDR) — President Donald Trump said Wednesday he has no plans to fire Federal Reserve Chair Jerome Powell despite an ongoing Justice Department criminal investigation, but indicated he will announce a replacement within weeks as he narrows his selection to two leading candidates.

Trump told Reuters he and Powell are in “a little bit of a holding pattern” while the administration determines its next steps regarding the Fed chair, whose term expires in May. The president suggested he was leaning toward nominating either former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett to succeed Powell.

No Immediate Firing Plans

When asked directly whether he would attempt to remove Powell from his position, Trump replied with an unequivocal denial.

“I don’t have any plan to do that,” Trump told Reuters in a Wednesday interview.

Freedom-Loving Beachwear by Red Beach Nation - Save 10% With Code RVM10

Pressed on whether the ongoing Justice Department investigation provided grounds for removal, Trump acknowledged uncertainty about his ultimate course of action.

“Right now, we’re (in) a little bit of a holding pattern with him, and we’re going to determine what to do. But I can’t get into it. It’s too soon. Too early,” Trump said.

Powell’s current term as Fed chair runs until May, though he is not required to leave the Washington-based Board of Governors until 2028. The criminal investigation centers on cost overruns for a $2.5 billion project to renovate two historical buildings at the Federal Reserve headquarters.

“Two Kevins” Lead Succession Race

CLICK HERE TO READ MORE FROM THE THE DUPREE REPORT

Trump indicated strong preferences for his eventual nominee, narrowing the field to two candidates he described favorably.

“The two Kevins are very good,” Trump said. “You have some other good people too, but I’ll be announcing something over the next couple of weeks.”

Trump ruled out Treasury Secretary Scott Bessent for the Fed chair position, noting Bessent wants to remain in his current role. Bessent has been leading the search for Powell’s replacement.

Kevin Warsh, 55, served as a Fed governor from 2006 to 2011, with much of his tenure overlapping the 2008 financial crisis and Great Recession. A former Morgan Stanley banker, Warsh was the youngest person to serve on the Fed board when President George W. Bush nominated him in 2006. Trump considered Warsh for the Fed chair position in 2017 before ultimately appointing Powell.

Kevin Hassett, 63, currently serves as director of the National Economic Council in Trump’s second administration. An economist who earned his doctorate from the University of Pennsylvania, Hassett previously chaired the White House Council of Economic Advisers during Trump’s first term and worked as an economist at the Federal Reserve Board of Governors in the 1990s.

Prediction Markets React

Prediction markets have tracked the Fed chair race closely, with traders adjusting probabilities based on Trump’s public comments. According to Kalshi, Hassett currently holds approximately 50% odds while Warsh stands at 42%, though these figures have fluctuated significantly in recent weeks.

The trading volume on this market has exceeded $10 million across various prediction platforms, reflecting the significant market interest in who will lead the world’s most powerful central bank.

“The two Kevins,” Trump told The Wall Street Journal in December when discussing his top candidates.

Financial analysts note that Warsh offers what some call a “Goldilocks” solution—market credibility from his Fed and Wall Street background combined with policy views aligned with Trump’s preference for lower interest rates. Hassett faces some skepticism over concerns he might be perceived as too politically compliant with White House preferences.

Trump Dismisses Independence Concerns

Trump dismissed widespread criticism that his actions could undermine the Federal Reserve’s independence, including concerns raised by members of his own Republican party.

“I don’t care,” Trump said bluntly when asked about politicizing the central bank. “They should be loyal. That’s what I say.”

He also brushed aside warnings from analysts and policymakers that weakening Fed independence could erode the value of the U.S. dollar and fuel inflation.

“I don’t care,” Trump repeated.

The president argued he should have input on monetary policy decisions given his business background.

“A president should have something to say” about Fed policy, Trump told Reuters. “I made a lot of money with business, so I think I have a better understanding of it than Too Late Jerome Powell.”

Trump appointed Powell during his first term but has repeatedly criticized the Fed chair for not cutting benchmark interest rates either as quickly or as far as the Republican president prefers. Trump has derided Powell with nicknames including “numbskull,” “a dumb guy” and “an obvious Trump Hater.”

Senate Confirmation Challenges

The nomination faces potential hurdles in the Senate, where key Republicans have expressed concerns about the ongoing investigation into Powell. Sen. Thom Tillis (R-NC), who sits on the Senate Banking Committee that oversees Fed nominations, has vowed to withhold his vote on any nominee until the Powell investigation is resolved.

“Until this matter is resolved, I’m not considering anybody,” Tillis said. “I wouldn’t consider my mother for the post under the current conditions.”

The Banking Committee consists of 13 Republicans and 11 Democrats, meaning a single Republican defection could create a deadlock and block a nominee from advancing to the full Senate.

Powell Remains Defiant

Powell disclosed the Justice Department investigation Sunday, describing it as an attempt to pressure him for not satisfying Trump’s demands for sharply lower interest rates. Powell has denied any wrongdoing related to his congressional testimony about the Fed headquarters renovation.

“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said in his statement.

The Fed chair has received support from foreign economic officials, investors, former U.S. government officials from both parties, and his three living Fed chair predecessors, who jointly criticized the investigation as an unprecedented attack on central bank independence.

Trump has also attempted to fire Fed Governor Lisa Cook, who is challenging her termination in a legal case set to be argued before the Supreme Court next week. The case will test the limits of presidential authority over independent agencies.

Will Trump’s next Fed chair nominee face smooth Senate confirmation despite ongoing tensions?

Freedom-Loving Beachwear by Red Beach Nation - Save 10% With Code RVM10