Several Republican presidential hopefuls hold an unfavorable view of Federal Reserve Chair Jerome Powell and are unlikely to retain him in his position if a Republican assumes office. Although Powell’s current term extends until 2026, it is worth noting that he could potentially be ousted from his role. Numerous 2024 GOP presidential contenders have criticized the policies and decisions made during his time in office.
Since March 2022, the Federal Reserve has repeatedly increased the federal funds benchmark rate as a measure to combat inflation and address economic challenges. Among the candidates, there are differing views on Jerome Powell’s tenure, with some advocating for his removal from office, while others prefer to let his term run its course.
Certain candidates attribute the economic slowdown to the rising interest rates and argue that the Fed should have displayed more empathy in managing the post-pandemic financial markets.
The procedure for a sitting President to remove the chairman of the Federal Reserve System’s Board of Governors is shrouded in uncertainty. In contemporary history, this action has not been undertaken, and the legal process for such a move remains uncharted territory. The position is typically regarded as a non-partisan appointment, subject to approval by both the President and the Senate.
In the past, several chairpersons have been nominated by different presidents representing various political parties. Jerome Powell, for instance, was originally nominated by former President Trump in 2017 and subsequently nominated to serve a second term by the current President, Biden, in 2022.
Trump has stated that despite his nomination of Powell in 2017, he would not entertain the idea of reappointing Powell if he were to return to the presidency in 2024. Additionally, Mike Pence expressed support for someone like Judy Shelton to take over as Chairman in place of Powell.
Shelton had been nominated in 2020 but did not receive Senate approval. Trump made a second nomination of Shelton before the end of his term, but due to his electoral defeat and departure from the White House, her appointment could not be confirmed.