The Fed needs “regime change” and it starts with Jerome Powell leaving, entirely
If he stays on as a Governor its purely to be an obstructionist thorn in Trump’s side
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Jerome Powell said that he couldn’t possibly step down from the Fed while a criminal probe hung over the agency’s bloated headquarters renovation. That reason died on Friday. The Justice Department handed the whole mess to the Fed’s own inspector general. The criminal cloud that Powell kept waving around as his reason to stay on the Board of Governors after his term as Chairman expired. Gone. Poof. Now the calendar is staring him down. His four-year term as chair ends May 15.
The question is not whether he’ll cling to a governor’s seat until 2028. It’s why anyone would think that’s a good idea?
Let’s be ruthlessly blunt here. Fed chairs don’t overstay. They serve their term and then they walk, and then they write a book and go on the lecture circuit. They don’t turn themselves into permanent political roadblocks once their leadership clock runs out.
Powell spent years insisting the Fed must stay above politics while a president openly criticized him, demanded lower rates, and talked about firing him.
But here’s the part nobody wants to say out loud: Powell’s own record at the Fed has more than a whiff of politics to it. In fall of 2024, with Joe Biden as president, inflation at 2.6 percent and just 12,000 jobs added in a month, the Fed cut rates three times in the run up to the election. Fast forward to the summer of 2025 with Donald Trump as president, inflation at 2.7 percent—barely a hair higher— and the labor market cracking - July brought only 73,000 jobs, well below expectations - Powell refused to cut.
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Instead he took to the podium, issuing warnings about how he was protecting against “tariff-based inflation” that was supposedly “coming” even as mortgage rates spiraled up. Suddenly it wasn’t just the President on Truth Social criticizing him. Two governors he himself appointed—Christopher Waller and Michelle Bowman—dissented for the first time since 1993 and called for a quarter-point cut. Even Jim Cramer on CNBC said the Fed was “behind the curve.”
It felt an awful lot like Powell and the Fed were making rate decisions with the primary intention of handicapping the Trump economic agenda and the American people paying the price. Would Powell have been this stubborn if Donald Trump wasn’t President? The pattern suggested the answer was no and that is exactly why fresh leadership is overdue.
Powell took advantage of the DOJ probe to manufacture a reason for him to draw out his exit for as long as possible. Now that leverage has vanished, and there is still talking about him staying.
Powell’s insistence to dig his heels in, to fight the the renovation probe under the auspices of “clearing his name,” always smelled like convenient cover to continue being an obstructionist thorn in Trump’s side. Now that that reason has evaporated, he’s looking for a new reason. The talk of him staying on as a Governor after his Chairmanship, no longer looks like the principled stance of a man wanting to clear his name in the face of accusations. It looks like naked defiance and confirms to many what has long been suspected about his reasoning and motivations.
Powell’s defenders will call any push for him to leave “politicizing the Fed.” That is backwards. Staying after the probe vanished is the politicization. Donald Trump has three appointees already heading to the board—Kevin Warsh as the new chair, plus Christopher Waller and Michelle Bowman from his first term. Add them up and the institution gets fresh eyes instead of the same old script. Warsh has spoken openly about “regime change” at the central bank. Good. The current regime delivered asset bubbles for the wealthy and headaches for everyone else. A clean hand-off on May 15 would let that change happen without the drama of a holdout governor fighting desperate rearguard actions from his seat until 2028.
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Markets know it too. Jefferies strategist David Zervos said Friday that a swift Powell exit would actually be bullish—lower yields, happier traders—because Wall Street can smell easier money coming under new management.
Critics will say Powell is the adult in the room, the steady hand who steered us through a pandemic and an inflation spike. Fair enough. He speaks carefully, avoids drama, lets the data talk. But the data is talking right now, and its saying the labor market is softening while inflation fears are mostly hypothetical. Refusing to act looks less like caution and more like obstruction. When a Biden-appointed governor abruptly resigned last summer amid internal dissent, it was another quiet signal that the board is fractured. Powell cannot fix that fracture by digging in his heels. He can only make it worse. Staying just feeds the narrative that the Fed answers to itself, not to the country that pays its bills.
The realistic truth is that “Fed independence” was never meant to be immunity. It was meant to keep short-term politics out of rate decisions. But when the agency becomes an unaccountable oligarchy—Ron Paul’s words—shielded from audits and blind to the inequality it creates, independence becomes license. Treasury Secretary Scott Bessent is right to demand a review of what the Fed is and what it has been doing. The dual mandate of stable prices and maximum employment is supposed to serve working families, not just asset managers. Powell’s tenure gave us the opposite: easy money for the top, higher prices for the rest. A new team aligned with the current administration can deliver the accountability voters asked for. They can examine the balance sheet, question the endless QE hangover, and set rates based on today’s data instead of yesterday’s grudges.
Powell has to weigh his reputation, his family’s peace, and the practical limits of one more governor’s influence. The rest of us have a stake too. We need an institution that can cut rates when the jobs numbers scream for it, not when the political calendar says it’s safe. We need transparency, not lectures. We need a Fed that remembers it works for the country, not against the president the country elected—twice!
The renovation dust has settled. The probe has been referred. The calendar keeps moving. Powell’s choice is not about Fed independence. It is about whether the Federal Reserve belongs to the American people or to the people who happen to run it at the moment who don’t want to give up the power they wield. The cleanest, most realistic move is the simplest one: walk away on May 15. Hand over the keys. Let the new team get to work. The numbers will keep coming. The decisions will keep mattering.
The country will be better off if they are made by people who aren’t fighting yesterday’s battles.
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Fed and Congress ( read the Marxist Drmoc rats 🐀) must have a total
Remake top to
Bottom in their regimes
Here is how Warsh's Fed would differ from Powell's and what that means for the market:
https://arkominaresearch.substack.com/p/powells-last-meeting-warshs-fed-lower