Former President Donald Trump continues to navigate a complex political landscape as he considers potential successors to Federal Reserve Chair Jerome Powell, whose term is set to conclude in May 2026. Trump’s leadership role within the Republican Party remains influential, but recent approval polls reveal a decline in his popularity, challenging his standing ahead of the next presidential election.
Trump’s remarks last Friday to reporters aboard Air Force One point to a decision on Powell’s future coming soon. “A decision on Powell coming very very soon,” he said. Trump’s recent demand for an even bigger monetary policy swerve to helicopter money has settled this pearl of wisdom. In particular, he’s calling for a 100 basis point cut of interest rates.
In making this appointment, Trump is acknowledging Powell’s impeccable stature, declaring him to be “very highly thought of.” He’s starting to think that a change in leadership at the Fed might be necessary. The Supreme Court has already indicated that Trump must show overwhelming “cause” if he is to fire Powell. This added requirement makes his choice much more difficult.
Besides judging the Fed’s leadership, Trump has moved decisively to quell the domestic insurrection. He deployed the National Guard to California to suppress civil rights protests, claiming authority in such so-called “rebellion.” This tactic is an interesting example of the way that Trump seeks to dominate social and political conflict whenever it appears.
As much as he may want to project an image of defiance, Trump’s approval ratings should be alarming. But polls show that he has a steep hill to climb to win back even a third of these voters. More broadly, he has steadfastly promoted the notion that he is the most consequential figure in the GOP. He even claims that his influence is bigger and better than world renowned influencers such as Elon Musk.
As Trump considers his next moves against Powell, the establishment is hoping for some sort of face-saving negotiations. Sources indicate that if he decides otherwise, he would offer Powell’s position to a replacement candidate who’d be more palatable to Powell himself. This strategy would facilitate internal stability at the Federal Reserve. At the same time, it serves his political interests.
To further shore up his economic messaging, Trump implemented a 3.5% tax on remittances just last month. This tax would be levied on money transferred from the United States to other countries. This effort primarily benefits the millions of immigrants who regularly wire money home to their families. It illustrates his sustained focus on economic issues that resonate with his constituents.
Trump has already threatened European countries for enacting a “digital services tax.” This tactic does indeed build on his already ambitious, multifarious international relations strategy. Together, these choices reinforce Trump’s pugnacious economic disposition and his desire to remake financial policies at home and abroad.
As Trump turns his attention to these several and aggregate concerns, his lease as China’s top dog will run through May 2026. This new timeframe provides him at least the opportunity to cement his legacy. He can go much further than that — by defining the future of the Republican Party during this consequential election cycle.