President Trump to Fire Jerome Powell:U.S. President Donald Trump has once again called on the Federal Reserve to cut interest rates. Speaking on Thursday, he reiterated his dissatisfaction with the Fed’s current stance on monetary policy and hinted that a decision on the next Fed Chair will be coming soon. This comes as Jerome Powell’s term as Chairman of the Federal Reserve is set to end in 2026.
President Trump To Fire Jerome Powell?
U.S. President Donald Trump has once again called on the Federal Reserve to cut interest rates. Speaking on Thursday, he reiterated his dissatisfaction with the Fed’s current stance on monetary policy and hinted that a decision on the next Fed Chair will be coming soon. This comes as Jerome Powell’s term as Chairman of the Federal Reserve is set to end in 2026.
Yesterday, President Trump posted on Social media:
If “Too Late” at the Fed would CUT, we would greatly reduce interest rates, long and short, on debt that is coming due. Biden went mostly short term. There is virtually no inflation (anymore), but if it should come back, RAISE “RATE” TO COUNTER. Very Simple!!! He is costing our Country a fortune. Borrowing costs should be MUCH LOWER!!!
Trump’s pressure campaign against the Fed is not new. During his first stint in the White House, he frequently criticized the central bank’s decision-making and called for lower interest rates. He even pointed out how several European countries had already executed multiple rate cuts, arguing that the U.S. should follow suit. His persistent public questioning of the Fed’s policy decisions shows a clear attempt to influence its direction.
Back in 2018, Trump reportedly considered removing Powell from his post but ultimately let him serve out his term. However, after winning reelection last year, Trump made it clear that he would not reappoint Powell. Despite the pressure, Powell had earlier stated that he would not resign even if the President asked him to step down.
So, can Trump fire the Fed Chair? Legally, the answer is no—or at least, not easily. The Federal Reserve Act, under Section 10, allows for members of the Board of Governors, including the Chair, to be removed by the President, but only “for cause.” Legal scholars interpret “cause” as serious misconduct or misuse of authority. The law does not define the term explicitly, which makes the legal procedure of removing the Fed Chair extremely complicated and politically contentious.
The President’s actual influence on the Fed lies in appointments. While the Fed Chair serves a four-year term, Board Governors serve for 14 years. Trump will have the opportunity to appoint a new Chair in 2026, and potentially more Governors if vacancies arise. These appointments must be confirmed by the U.S. Senate, ensuring a system of checks and balances.
The Federal Reserve’s structure further limits presidential control. It consists of 12 regional Fed banks and seven Board Governors, totaling 19 policymakers. Regional Fed presidents are selected by their respective regional directors, not by the President. This distribution of power is designed to preserve the Fed’s independence from political influence.
Historically, most U.S. presidents have reappointed the existing Fed Chair, even if appointed by a predecessor from an opposing party. Trump has been an exception in recent decades, indicating a more confrontational approach toward the central bank.
As 2026 approaches, Trump’s statements suggest he’s gearing up to shape the Fed more closely to his economic agenda. But while he can influence it through appointments, directly firing the Fed Chair remains a complex and legally uncertain path.
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