RUNNING THE Federal Reserve is generally considered one of the world’s great jobs. Running America’s central bank with Donald Trump in the White House is a rather thornier proposition. Jerome Powell, the current chair, is the subject of regular presidential tirades. “Where is the Federal Reserve Chairman, Jerome ‘Too Late’ Powell, today?”, asked Mr Trump on Truth Social, his social network, as his war in Iran sent markets lurching lower last month. Mr Powell is also the subject of a spurious Department of Justice (DoJ) probe into the renovation bill for the Fed’s headquarters.
Kevin Warsh may have hoped for an easier run of things. In January, when Mr Trump nominated the former Fed governor to succeed Mr Powell, consensus in markets was of at least one or two cuts in interest rates, and probably more, before the end of 2026. That would not have got today’s 3.5-3.75% down to the 1% or so that the president occasionally demands. But it might at least have kept Mr Warsh out of the cross-hairs.
