President Trump's strategy to reshape the Federal Reserve may have backfired, potentially keeping Jerome Powell in his role as chair beyond his term's end. This is despite Trump's efforts to replace Powell with a more dovish candidate, Kevin Warsh, who hasn't yet been approved due to Senate Banking Committee hearings and ongoing criminal investigations into Powell and other Fed members. Stephen Miran, Trump's key ally at the Fed, has resigned from his White House post, marking a reduction in the White House's influence over the Fed's independence. This development could further extend Powell's tenure as Fed chair, as Trump's attempts to exert control over the institution continue to face resistance from Democrats.
