Are Jerome Powell’s Days as Federal Reserve Chair Numbered?

Key Points

1. Former President Donald Trump has publicly criticized Jerome Powell, calling him a 'stubborn mule' and accusing him of costing 'hundreds of billions' by not cutting interest rates, currently at 4.25% – 4.5%.

2. Trump and other Republicans, including FHFA Director Bill Pulte and Senators Rick Scott and Tommy Tuberville, have accused Powell of misconduct related to the Fed’s $2.5 billion headquarters renovation and political bias.

3. Powell’s position is legally protected under the Federal Reserve Act, which allows removal only 'for cause,' such as gross misconduct, and a recent Supreme Court ruling shields the Fed from arbitrary dismissal.

4. Powell has dismissed political pressure as 'noise,' reaffirming data-driven policy, and the Fed has held interest rates steady, citing inflationary pressures from Trump’s tariffs.

5. Despite the pressure, Powell’s term as Fed Chair continues until May 2026, and discussions about his potential replacement or removal remain speculative, with market risks and legal barriers complicating any immediate action.