President Donald Trump has repeatedly expressed frustration with Federal Reserve Chairman Jerome Powell, even calling for his termination over disagreements on monetary policy. However, removing Powell from his position is not as simple as issuing an executive order. This article explores why Trump cannot easily fire Powell as Fed Chairman.
What Sparked Trump’s Criticism of Powell?
Trump’s latest comments followed a report by Powell cautioning against the economic risks of tariffs, particularly those pushed by the former president during his term. The Fed, under Powell’s leadership, has resisted cutting interest rates further due to persistently high inflation — currently above the central bank’s 2% target.
Frustrated by what he views as a slow response from the Fed, Trump lashed out: “Jerome Powell of the Fed, who is always TOO LATE AND WRONG… Powell’s termination cannot come fast enough!”
Why Donald Trump cannot remove Jerome Powell as Fed chairman
While Trump’s frustration with Powell isn’t new — they clashed repeatedly during Trump’s presidency — the idea of firing a sitting Fed chair is virtually unprecedented.
The Federal Reserve Act provides clear protections for members of the Federal Reserve Board. It states that board members can only be removed by the president “for cause.” Legal experts interpret “cause” as serious misconduct, malfeasance, or incapacity — not disagreements over policy.
Jerome Powell is both a member of the Fed’s Board of Governors and the Chair of the Federal Reserve. While his term as chair runs through May 2026, he is also serving a 14-year term on the Board, which cannot be terminated without cause.
This distinction matters. Even if a president tried to remove him as chair, Powell could remain on the Board — still wielding significant influence.
If Trump did try to remove Powell, it would likely end up in the courts — and eventually the Supreme Court. Interestingly, some conservative justices have shown interest in expanding presidential power in similar contexts. However, there is no guarantee the Court would side with Trump, especially given the Fed’s need to remain independent from political pressure.
While Donald Trump may be eager to push Jerome Powell out of the Fed, the U.S. legal framework makes it extremely difficult to do so. Without proven misconduct or a substantial legal loophole, Powell is likely to remain in his position until the end of his term.
