Donald Trump’s beef with Fed Chair Jerome Powell just hit another level. After the Federal Reserve decided (again) to keep interest rates steady, Trump unleashed one of his signature Truth Social tirades, calling Powell “TOO LATE, TOO ANGRY, TOO STUPID, & TOO POLITICAL” — and blaming him for costing the US “TRILLIONS OF DOLLARS.”
Classic Trump? Absolutely. But the real question is: can he actually fire Powell?
Even though Trump has flirted with the idea of ousting Powell before, the law isn’t on his side. Under current rules, the Fed chair can only be removed “for cause” — meaning serious misconduct, not just policy disagreements. Powell himself addressed this back in April, saying that the Fed’s independence is protected by law and enjoys bipartisan support.
That said, Trump’s legal team has a case pending before the US Supreme Court that could change the game. It challenges the long-standing 1935 Humphrey’s Executor precedent, which limits a president’s power to remove leaders of independent agencies. If the Court overturns that rule, it could open the door to a president firing a Fed chair — though many legal experts think the Fed might still be exempt.
He did! Trump nominated Powell to lead the Fed back in 2017, replacing Janet Yellen. Then Biden reappointed him in 2022 for another four-year term. Now, as Powell sticks to a cautious monetary policy, Trump’s relationship with his own pick has turned sour.
In fact, Trump recently said he was “surprised” Biden kept Powell around.
“He’s a terrible Fed chair,” Trump declared earlier this month.
It all boils down to interest rates — and politics. Trump wants the Fed to slash rates to 1% or even lower, arguing that high borrowing costs are dragging down the economy. Powell, on the other hand, is trying to balance growth while keeping inflation in check.
The Fed’s July 30 decision left the benchmark rate between 4.25% and 4.5%. Two board members — Michelle Bowman and Christopher Waller — voted to lower it, marking the first double dissent in decades. Both, by the way, are rumored contenders to replace Powell if Trump wins a second term.
And as if things weren’t dramatic enough, Trump also accused Powell of overseeing one of the “most incompetent, or corrupt” building renovations ever — referring to the Fed’s $2.5 billion headquarters update.
Trump may fume, tweet, and tease legal challenges, but Powell’s job is safe — for now. His term runs through May 2026, and unless the Supreme Court flips decades of precedent, Trump can’t do much more than complain.
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