Trump’s Found A Replacement For Jerome Powell, But Will He Jump Straight Into the Fire?

Interesting how a new democracy like South Korea sent its sorry excuse for a president packing when it was time to do so. Interesting how Brazil’s Senate removed its president for abuse of power. Interesting how the Brits have it together enough to where Liz Truss knew when it was time to give up and resigned. But somehow America cannot do what must be done and deal with the existential threat that is Donald Trump. That said, former treasury secretary Larry Summers says that Trump’s machinations with tariffs are of such severity it puts him in mind of Liz Truss. But Trump won’t resign so then what?

Former Treasury Secretary Larry Summers said Thursday there was between a 10 and 50 percent chance that Trump’s tariff policies result in a large-scale financial revolt comparable to the one that led to the resignation of former U.K. Prime Minister Liz Truss.

“We are running a risk that is probably below 50 percent but certainly greater than 10 percent that in the next several months the United States will have a Liz Truss moment,” he said.

Yardeni told The Hill he thought Bessent might be nominated to replace Powell as Fed chair. Myrow said it could be Kevin Warsh, a former Fed governor.

“Trump is looking for two things — someone who’s going to follow what he wants and someone who looks the part of central casting. The question is whether Warsh will be comfortable enough following through lowering rates even as inflation is persistent,” Myrow said.

So once again we see Scott Bessent being considered for musical chairs. It has also been speculated that he would replace Howard Lutnick, who is universally hated, as head of Commerce. Now he’s possibly going to head The Fed. This is getting to sound like Bessent is the character of Bottom in Midsummer Night’s Dream, “Let ME play _______.” (Fill in the blank with any character’s name.) Except Bottom’s ego told him he could play all the different parts, while Bessent is regretting that he’s in the role that he’s already cast in and unlikely to want to make a change that would take him from the frying pan straight into the fire.

But maybe Kevin Warsh will. I have serious doubts. I don’t think anybody sane from outside this administration is going to want to become the face of the economic disaster that Trump is creating and that is exactly what will happen if Warsh becomes the new Chair of the Federal Reserve and starts obeying Trump’s insane directives.

As Powell sounds the alarm over the stagflationary risks of Trump’s tariff policies, the president is calling for interest rate cuts and threatening to fire the Fed chief.

Trump spoke multiple times on Thursday about his desire to remove Powell from his position as chair of the Fed’s board of governors, which could be illegal as per a 90-year-old Supreme Court ruling.

“Powell’s termination cannot come fast enough!” Trump wrote in an early morning social media post, in which he accused the Fed chief of being late to cut interest rates and exhorting him to do so.

Later in the day, Trump stressed his ability to fire Powell despite the Fed chief’s insistence that he cannot be fired and will not leave before the end of his term.

“If I want him out, he’ll be out of there real fast, believe me,” Trump said.

“Oh, he’ll leave. If I ask him to, he’ll be out of there,” Trump told reporters. “I don’t think he’s doing the job. He’s too late. Always too late. A little slow. And I’m not happy with him. I let him know it.”

And I daresay that Powell’s response is along the lines of not caring whether Trump is “happy” or not but only caring whether The Fed is being competently managed. And indeed, that’s Powell’s job, not to make toddler Donald happy. Search high and low today, as I did, there is nobody sane or otherwise, who is advocating for Powell to be replaced.

“It will spook financial markets too much to terminate him,” Stephen Myrow, managing partner of Beacon Policy Advisors, told The Hill on Thursday. “But you’ve already started to see discussion of preparing for his replacement.”

“As [Treasury Secretary Scott] Bessent suggested — and then backed off from — in October before the election, I could see a situation where they announce [his replacement]. Normally, you announce the replacement some months ahead of time just to prepare the market,” he said.

Trump doesn’t operate in a slow and sane manner, he’s the tortoise on psychedelics, never ever the measured hare.

Investors also expect Trump’s anger at Powell to be contained.

Traders largely ignored Trump’s threats Thursday, as stocks closed mixed across the board and did not react noticeably to the president’s comments.

The yo yo-ing stock market continues. There was another uptick in the 10-year treasury bond yield. Nobody has any idea what’s going to happen and everybody’s a nervous wreck. But here is Trump lying through his teeth about a docile Xi Jinping agreeing with him.

I can’t say if he called, that’s not appropriate but it’s pretty obvious that he called but it’s not that important if he called because we will have a deal…

Motherfucking word salad bullshitpalooza.

Xi didn’t call. Xi is kicking his ass.
Our country is a laughingstock.

— Jo (@JoJoFromJerz) April 17, 2025

There is one winner so far in this trade war and it is China. The only questions we wrestle with here in this country are:

1. Will we go into a bad recession or possibly Great Depression II?
2. Can anybody talk sense to Trump and get him to stop this madness with the tariffs?
3. Will our allies abandon us and Canada emerges as the leader of North America?

This was all predicted during the campaign but apparently right-wing media was strong enough to persuade enough people that nothing bad could happen under Trump. Less than 90 days into this madhouse administration, look at the conversations we’re having?

************

Friends, if you can donate to help us stay up and running we would appreciate it. All donations go towards overhead. Thank you. Ursula

Support the site with a subscription today and see no more ads!

Go Ad-free Now!