Trump escalates pressure on Powell as Fed chair search nears end

Core Viewpoint - President Trump has expressed dissatisfaction with Jerome Powell's tenure as chair of the Federal Reserve, suggesting that Powell's continued presence on the Board of Governors could lead to an unhappy experience for him [1][2]. Group 1: Federal Reserve Dynamics - The Trump administration has intensified its scrutiny of Powell, including issuing subpoenas related to a potential criminal investigation into the Fed's renovation of its headquarters, which Powell has labeled as political pressure [2][4]. - If Powell remains on the Board after his term as chair ends in May, he would maintain significant influence over monetary policy decisions [4][6]. - Powell's continued presence would also prevent Trump from appointing a new chair unless another current governor is selected, which would require the White House to fill the position currently held by Governor Stephen Miran [6]. Group 2: Search for New Chair - Trump's search for a new Fed chair is reportedly narrowing, with the president indicating that he has reduced the list of candidates to potentially one [7]. - The final contenders for the position include Rick Rieder from BlackRock, National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller, and former governor Kevin Warsh [8][9]. - Hassett was initially seen as the frontrunner, but Trump has expressed concerns about losing a key economic policy messenger if Hassett were to move to the Fed [8][10]. Group 3: Confirmation Challenges - The ongoing subpoenas from the Trump administration may complicate the confirmation process for any new Fed chair nominee, with Senator Thom Tillis indicating he will oppose any nomination until the investigation is resolved [10]. - Trump has downplayed these concerns, suggesting that Tillis's political future is uncertain as he is not seeking reelection [10].