#PowellVsTrump 🔹 What’s happening now

On July 16, 2025, former President Donald Trump reportedly showed a draft letter to Republican lawmakers about firing Federal Reserve Chair Jerome Powell, citing frustrations over interest rates and a $2.5 billion Fed HQ renovation .

Trump later publicly said it’s “highly unlikely” he’ll fire Powell — unless there’s proven fraud in that renovation — and that it’ll more likely happen when Powell’s term ends in May 2026 .

🔹 Why this matters

Presidents have no clear legal authority to fire a Fed chair over policy decisions—only “for cause” (e.g., misconduct), according to scholars and the Supreme Court .

Markets reacted sharply: stocks dropped, bond yields spiked on the news—then softened after Trump dialed back his threat .

Many leaders, including Senate Republicans like Thom Tillis and business figures like JPMorgan’s Jamie Dimon, cautioned strongly against politicizing the Fed, warning this could harm U.S. financial stability .

🔹 Bottom line

Trump did test support among GOP lawmakers — but now claims firing Powell is “very unlikely,” reserving that until potentially May 2026 or unless proven misconduct emerges.

The episode highlights deep friction over monetary policy and remains a warning shot to markets about possible political interference.

As of now, Powell says he intends to serve through his full term and legal protections are expected to hold.

Want a deeper dive on:

The legal framework around firing Fed chairs?

Market reactions and long-term implications?

A profile on Jerome Powell’s Fed tenure?