Trump Says He Is Considering Suing Fed Chair Powell, Plans to Nominate New Chair

On December 29, 2025, U.S. President Donald Trump stated he is considering a lawsuit against current Federal Reserve Chair Jerome Powell on grounds of "incompetence". Simultaneously, Trump reaffirmed that his preferred candidate for the Fed chairmanship had not changed and that he expects to announce the new nominee in January 2026.

Prior reports from The Wall Street Journal indicated Trump's inclination towards former Fed Governor Kevin Warsh or White House National Economic Council Director Kevin Hassett for the position. This move represents a significant escalation in the long-standing tension between the White House and the independent monetary policy authority, raising profound market concerns about the future independence of the Fed and the stability of U.S. monetary policy.