Jerome Powell, the current Chair of the Federal Reserve, is facing mounting political pressure that could jeopardize his position before the end of his term in May 2026. A coalition led by President Donald Trump, influential Republicans in Congress, and FHFA Director Bill Pulte is questioning his leadership, stirring uncertainty across markets.

🔹 Trump Renews His Attack

Trump, who nominated Powell in 2017, has reignited their long-standing conflict. In June, he labeled Powell a “stubborn mule” for refusing to lower interest rates, currently set between 4.25% and 4.5%, and accused him of costing the economy “hundreds of billions.” Trump even demanded Powell’s resignation, referencing lower rates in Japan and China.

🔹 Fed Headquarters Renovation Scandal

One of the most contentious issues is the planned $2.5 billion renovation of the Fed’s Washington headquarters. Critics, including Trump and Pulte, claim Powell misled Congress about the project’s scope and expenses. Powell responded by noting the renovations were approved before he became chair and that claims of “luxury” upgrades are misleading.

🔹 Congress Considering Investigations

Senators Rick Scott, Tommy Tuberville, and House Judiciary Chair Jim Jordan are reportedly open to launching investigations into Powell’s leadership. Pulte has called for his removal for “gross misconduct,” the only legal basis for firing a Fed chair.

🔹 Bessent as Shadow Successor

Treasury Secretary Scott Bessent, considered a likely candidate to succeed Powell, is already reviewing potential replacements. He favors a more dovish monetary stance and supports rate cuts—aligning with Trump’s economic agenda.

🔹 Fed’s Independence Under Pressure

Powell continues to emphasize the Fed’s independence. In June, following the FOMC meeting, he warned that tariffs could push PCE inflation to 3% in 2025 and stressed the need for caution. He pointed to the strong economy—4.2% unemployment and 2.5% private-sector growth—as reasons to stay the course.

🔹 Legal Protection but Mounting Tensions

While Powell is legally protected from arbitrary dismissal—a safeguard backed by a recent Supreme Court decision—the growing political campaign against him is eroding his authority. Even without immediate dismissal, rumors of successors are casting a long shadow over his leadership.


📌 Conclusion:

Jerome Powell may weather this political storm for now, but his position has never been more uncertain. With 2026 approaching, pressure for a leadership change at the Fed is intensifying. The crypto community is watching closely—any shift at the helm of the U.S. central bank could dramatically reshape monetary policy and trigger new trends in digital assets.



#JeromePowell , #Fed , #FederalReserve , #USPolitics , #TRUMP

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