Can Trump fire Jerome Powell? Here's when Fed chair's term ends
Powell, who was nominated by Trump to lead the Fed during his first administration, has been facing pressure from Trump to vacate his position following his reported disagreements with the President over the Fed's inflation policies
Joe Biden, who succeeded Trump after the 2020 Presidential Election, nominated him for a second term.
Trump has previously expressed frustration with Powell's rate hikes and has hinted at replacing him with someone more aligned with his economic outlook.
Amid repeated calls by Donald Trump for Jerome Powell's resignation, the question arises whether the US President has the power to fire the Federal Reserve Chairman. Here's the answer. Can Trump fire the Federal Reserve Chairman?
The question of whether a U.S. president can fire a Federal Reserve chair has resurfaced amid speculation about Donald Trump's potential efforts to challenge Jerome Powell's leadership.
However, in one of his previous press conferences, Powell asserted that the law does not permit a president to dismiss a Fed chair without justification, emphasising his refusal to resign if pressured.
Legal experts like Russel Morgan of The Morgan Legal Group note the ambiguity in statutes governing Fed leadership removal.
Under the 1913 Federal Reserve Act, the central bank operates independently from political interference, with officials protected from dismissal over policy disagreements.
A 1930s Supreme Court ruling adds that removing a Fed chair would require proof of 'inefficiency, neglect of duty, or malfeasance.' Morgan explained that any attempt to oust Powell would likely involve a lengthy process, including a Senate-led investigation to establish valid grounds, as per Barron's report.
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