Could this be a fable whose moral would greatly displease Donald Trump: by constantly trying to push Jerome Powell out of the Federal Reserve (Fed), the president risks prolonging his career as a central banker.
The end of Powell’s term is approaching, but the arrival of the successor designated by the White House is faltering.
An update on this unusual transition at the helm of the central bank of the world’s largest economy.
Where are we now?
In theory, Jerome Powell will preside over his last meeting on US interest rates in a month, on April 28 and 29. His term ends at the end of May.
He took over the Fed under Donald Trump’s first presidency and was renewed under Democrat Joe Biden.
Since returning to power in January 2025, the Republican has relentlessly reviled him, calling him an “idiot,” “incompetent,” and “possibly dishonest.”
Donald Trump, who demands much lower interest rates, has tried tirelessly to oust him and push him to resign, without success.
The head of state even took a jab last month at the renovation work at the Fed’s headquarters in Washington, denouncing the cost (rising to 2.5 billion dollars from the initial 1.9 billion).
The peak of this destabilization campaign: a prosecutor close to Donald Trump, Jeanine Pirro, launched legal proceedings against these works.
Powell revealed this in January in a solemn address and denounced a “pretext” to attack the Fed’s independence.
The announcement triggered a strong reaction from economic circles and some Republican officials.
Shortly after, the White House designated on January 30 its candidate to replace Powell: former Fed governor Kevin Warsh.
What is the hold-up?
The Senate has the power to confirm Kevin Warsh’s nomination, who markets consider a credible candidate for the position.
The presidential majority is thin, meaning a Republican from North Carolina, Thom Tillis, can block the process.
He vows to do so until the legal proceedings hanging over Powell are resolved.
A judge dismissed this procedure, seeing it as a way to “harass Mr. Powell.” Jeanine Pirro has ruled out backing down and intends to appeal.
“This will only delay Kevin Warsh’s confirmation as Fed governor,” warned Thom Tillis on March 13.
