Kevin Warsh Pushes Powell Ouster, Touts Fed-Treasury Pact

- Former Fed Governor Kevin Warsh criticized Federal Reserve leadership and proposed a renewed Treasury-Fed partnership. - Warsh aligned with Donald Trump’s advocacy for rate cuts and replacing Jerome Powell as Fed Chair. On July 17, 2025, CNBC reported that former Federal Reserve governor Kevin Warsh criticized the central bank's current leadership, calling for a “regime change” at the institution. As a potential candidate to replace Jerome Powell as Fed Chair, Warsh argued that the Federal Reserve and the U.S. Treasury must align more closely to tackle the rising national debt. During the interview, Warsh highlighted a “credibility deficit” at the Federal Reserve under Powell’s leadership, attributing this to the central bank’s reluctance to cut interest rates. Calling the hesitation a “mark against them,” he supported Donald Trump’s public criticism of Powell. On July 17, former Federal Reserve governor Kevin Warsh said on CNBC, “Trump is right to be pushing the Fed publicly to bring about a regime change in the conduct of policy.” Addressing speculation about Powell’s potential removal, Warsh predicted during the appearance, “Regime change at the Fed will happen in due course.” As a top contender to replace Powell, Warsh could become a key figure in reshaping monetary policy under a Trump administration. Warsh also proposed a modern “Treasury-Fed accord,” referencing the historic 1951 agreement that established a clear separation between the Federal Reserve’s monetary policy and the Treasury’s fiscal operations. He argued a new agreement is crucial, as the two institutions currently “work at cross purposes.” In addition, Warsh suggested that closer collaboration could better address the growing national debt and that a rate cut would be the “beginning of the process to get the balance right” between monetary and fiscal policy. These remarks come amid intensified speculation about potential leadership changes at the Federal Reserve, as President Trump is reportedly considering new candidates for Fed Chair. Warsh’s experience as a Fed governor from 2006 to 2011 strengthens his position as a credible successor to Powell. Meanwhile, according to CoinMarketCap on July 17, Bitcoin (BTC) was trading at $30,482 as of 12:00 UTC, with its 24-hour trading volume having increased by 1.8%. The source also reported that during the same period, Ethereum (ETH) was trading at $1,992, with its volume up 2.1%.