The Federal Reserve has ultimately welcomed its new master—Kevin Warsh—and the man Trump “gnawed his teeth” over has finally handed over the baton today.

The Federal Reserve officially confirmed that Kevin Warsh will succeed Powell as the new Chair of the Federal Reserve. With the end of Powell’s era, the love-hate saga between him and Trump, dubbed “Washington’s most exciting soap opera,” has finally come to an end.
This decade-long history is a fierce contest between “the president’s selection favor” and “the fight to defend professional independence”🥊:
1️⃣ Honeymoon Period: Appointing the “In-the-Know” (2017 - 2018)
Appointed as the leader: In November 2017, Trump broke tradition by not reappointing Yellen, instead choosing Powell, who appeared steady, had Wall Street roots, and a Republican background.
Initial evaluation: Trump praised Powell as “strong, smart, talented,” believing he would continue low-interest-rate policies to support the U.S. economic expansion.
2️⃣ Breakup Period: Interest Rates as the “Only Enemy” (2018 - 2019)
Continuous rate hikes spark anger: In 2018, Powell insisted on raising rates to prevent overheating. Trump then publicly criticized him on social media and in interviews, calling Powell his “biggest enemy,” even worse than his current opponents.
“Dismissal” threats: Trump repeatedly asked aides whether he had the unilateral authority to dismiss the Fed Chair (legally, the Fed Chair has independence). Powell responded firmly with “I will complete my term,” defending the central bank’s independence.
3️⃣ Easing Period: “Comrades” During the Pandemic (2020)
Unlimited QE to rescue the market: After the COVID-19 outbreak, Powell decisively launched an “unlimited liquidity supply” mode, lowering interest rates to zero. This move greatly supported the financial markets at the time, and Trump’s attitude warmed instantly, praising Powell as “doing a great job.”
Joint fight against the pandemic: This year was the most harmonious period between the two, with both agreeing on aid to small and medium-sized enterprises and maintaining market stability.
4️⃣ Re-emergence of Confrontation: The Tug-of-War over Re-election and Inflation (2021 - 2024)
Biden’s appointment and Trump’s sneer: Although Powell was appointed by Trump, Biden chose to reappoint him in 2021. Trump, now in opposition, changed his tone again, accusing Powell of raising rates too slowly, causing severe inflation, and later blaming him for delaying rate cuts as “political manipulation.”
5️⃣ Final Chapter: Trump’s Return and Powell’s Resignation (2025 - 2026)
The first move after returning: In 2025, after Trump returned to the White House, although he couldn’t immediately dismiss Powell, he continuously “pressured through rhetoric” and nominated Warsh as his successor, effectively putting Powell in a “lame duck” stage.
A dignified farewell: Today’s appointment of Warsh marks the full return of “Trump-style monetary policy.” In his farewell speech, Powell insisted that he defended the core spirit of the Fed’s independent decision-making under political pressure.
Powell earned professional dignity, and Trump finally got his “obedient” chairman. Warsh has arrived—a “low-interest-rate enthusiast” more in line with Trump’s taste.