Can Trump fire Jerome Powell? What to know about Fed chair Trump calls ‘too stupid'
Trump has repeatedly talked of firing Powell while criticizing him for not lowering interest rates. Powell's term as chairman is set to end in May 2026.
The Fed's decision kept the short-term rate the same as it has been all year, as it balances the need to grow the economy and the uncertainty around how tariffs could drive inflation.
"Jerome 'Too Late' Powell has done it again!!!" Trump said in Truth Social post on July 31. "He is TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job of Fed Chair."
Trump has gone as far as to threaten to fire Powell in the past. But can he actually do that?
More: Fed leaves interest rates unchanged amid Trump pressure. 2 governors dissent.
Can Trump fire Jerome Powell?
Legally, no.
Powell addressed the potential for political pressure during his speech in Chicago in April.
"Our independence is a matter of law," Powell said, explaining Fed governors are not removable except "for cause," as determined by law.
"So, you know, Congress could change that law. But, I don't think there's any danger of that," Powell said. "Fed independence has pretty broad support across both political parties and both sides of the Hill."
However, Powell also mentioned a case Trump has taken to the U.S. Supreme Court that could change the landscape of independent boards' relationship with those in power. At its core, the case would challenge the 1935 Humphrey's Executor precedent, which holds the president can't fire independent agency board members without cause.
"I don't think that decision will apply to the Fed, but I don't know. It's a situation we're monitoring carefully," Powell said in April.
The Supreme Court has since granted a win to Trump in the case, indicating it could later overturn the ruling, but still suggesting the Fed would be exempt, Reuters reported.
Did Trump nominate Jerome Powell?
Yes.
Powell was appointed as chair during the first Trump administration, and he was reappointed for a four-year term in 2022 under the Biden administration.
On July 16, Trump seemed to pin Powell's position on Biden.
'He's a terrible Fed chair. I was surprised he was appointed," Trump said. "I was surprised, frankly, that Biden put him in and extended him, but they did."
What is the Federal Reserve, also called the Fed?
The Federal Reserve, also known as "the Fed," is the central bank of the U.S. It oversees monetary policy and financial regulation, among other things, "to promote the effective operation of the U.S. economy and, more generally, to serve the public interest," the website states.
This includes setting interest rates, the focus of Trump's complaints about Powell.
The Fed is made up of three primary entities: the Board of Governors, 12 Federal Reserve Banks and the Federal Open Market Committee.
Who is Jerome Powell?
Jerome Powell is the chair of the Federal Reserve Board of Governors.
He has been a member of the Board of Governors since 2012 and is scheduled to remain on the board past his term as chair until January 2028.
He previously served as an assistant secretary and as under secretary of the U.S. Department of the Treasury under the first Bush administration.
Contributing: Joey Garrison, Aysha Bagchi, Erin Mansfield, Paul Davidson, Zac Anderson, Jordan Culver, USA TODAY
Kinsey Crowley is the Trump Connect reporter for the USA TODAY Network. Reach her at kcrowley@gannett.com. Follow her on X and TikTok @kinseycrowley or Bluesky at @kinseycrowley.bsky.social.
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On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
