Can Donald Trump fire Fed Chairman Jerome Powell? Legal barriers, economic fear explains
Although the Fed Act allows the fire of board members, including the chairman, the president has never removed him from the Fed. This reason is interpreted as misconduct, not policy.
U.S. President Donald Trump and Fed Chairman Jerome Powell in the Oval Office
Can the US president fire the head of the Federal Reserve? An agency that has remained independent since its inception and working without succumbing to pressure from the state CEO may be trying to find an answer to the question. Constitutional experts and political experts are confused in Donald Trump’s statement on the tariffs.
What did Donald Trump say to Jerome Powell?
“Powell’s termination can’t be fast enough!” Trump wrote in an article on social media platform Truth Social, “before the Post, the U.S. president told reporters in the Oval Office: “If I want him out, he will leave there soon, believe me.”
Donald Trump was angry, apparently because Powell said in a speech at the Chicago Economic Club on Wednesday that the Fed’s decision would be based solely on the best decision for Americans. “That’s the only thing we have to do. We’re never affected by any political pressure … Our independence is a legal issue,” he said.
What did the head of the Federal Reserve say?
Powell also said that the Fed governor “is not mobile except for reasons” and that “we serve a long, seemingly endless term.” However, the president slammed the Fed’s head by declaring that he did not do his job. He claimed that Powell lowered interest rates “it was too late.”
Jerome Powell was first nominated for the Fed led by Trump in 2017 and renamed by President Joe Biden in 2022. His current term as chairman extends until May 2026.
Can the Presidential Fire Chief?
Although the Fed Act allows the fire of board members, including the chairman, the president has never removed him from the Fed. This reason is interpreted as misconduct, not policy. “The divergence of interest rates that courts don’t usually set interest rates is’for,” said Sarah Binder, an expert at the Federal Reserve and a senior fellow at the Brookings Agency.
Will Powell quit?
Powell himself made it clear that he would not walk quietly. Asked in November if he was willing to resign, he gave a “no.” But the Trump administration has already begun the foundation for a potential confrontation. Treasury Secretary Scott Bessent recently told Bloomberg that he hopes to start interviewing Powell’s possible replacement in the fall.
The issue comes as the Supreme Court weighs cases involving the president’s power to fire senior officials of independent agencies. The case involves the National Labor Relations Commission and the Excellent System Protection Commission, but its impact may be greater. If the court approves the Trump administration’s ruling, it can be interpreted as a legal conflict that shows how it resolves Trump’s desire to get rid of Powell’s.
Humphrey’s Executor v. United States case
In addition to Humphrey’s executor v. U.S., the Supreme Court’s ruling, in its most explicit words, limits the president’s ability to remove leaders of independent institutions without reason. The ruling has long covered the Fed’s protection from political firing. Now, it can be tested by the conservative Supreme Court soon.
