Kevin Warsh's Fed "Regime Change" Could Sink the Stock Market, and the Blame Lies With President Trump
Fed Chair Kevin Warsh sees room to lower interest rates, but President Trump's actions have essentially made rate cuts impossible.
Kevin Warsh's Fed "Regime Change" Could Sink the Stock Market, and the Blame Lies With President Trump
Overview
The S&P 500 (SNPINDEX: ^GSPC) returned 12.7% annually under former Federal Reserve Chair Jerome Powell, its best performance under any chairman since Paul Volcker took the position in 1979. Yet President Trump repeatedly criticized Powell and other Fed officials for keeping interest rates too high.
The president's attempts to influence monetary policy didn't stop at verbal attacks. Since Trump returned to office, the Justice Department has launched criminal investigations into Powell and Fed Governor Lisa Cook, moves that many economists warn could erode trust in the central bank.
Details
Enter Kevin Warsh, a former Fed governor who has argued for lower interest rates since last year. "We can begin reform at the Fed with a rate cut, which is just the first step to regime change," he told CNBC in July 2025. Warsh officially replaced Powell as Fed chair in May after securing Trump's nomination earlier this year.
Source
Originally published at www.fool.com.
