Fed Chair Jerome Powell's Stance Against Trump’s Pressure
Jerome Powell, the chairman of the U.S. Federal Reserve, has declared he won't step down from his position, even under pressure from President Donald Trump, except in the event of death. Powell's term as Fed Chair ends in May 2026, and he emphasizes the central bank's independence on monetary policy is enshrined in law.
Key Issues Driving Tension
- *Interest Rate Policies*: Trump criticizes the Fed's decision to keep interest rates relatively high, believing it hurts the economy. Powell maintains a cautious approach, prioritizing inflation control and economic growth.
- *Renovation Project Controversy*: A $2.5 billion renovation of the Federal Reserve headquarters sparks controversy, with critics labeling it "unnecessary luxury." Powell attributes the cost hike to unforeseen conditions like asbestos and contaminated soil.
- *Allegations of Perjury*: Republican Representative Anna Paulina Luna accuses Powell of misleading Congress about the renovation project, referring him to the Department of Justice ¹ ².
Trump's Threats and Potential Implications
- *Firing Powell*: Trump says it's "highly unlikely" he'll fire Powell, but doesn't rule it out, especially if there's evidence of fraud. Trump expresses dissatisfaction with Powell's performance, calling him "lousy" and hinting at potential changes in 2026.
- *Independence of the Federal Reserve*: If Trump were to fire Powell, it could significantly impact the independence of the Federal Reserve and potentially disrupt financial markets ¹ ².
Legal Framework
- *Limitations on Presidential Authority*: The president's authority to fire the Fed Chair is limited, with the Fed Chair removable only "for cause," meaning serious misconduct or inefficiency, not policy disagreements ¹.$BTC
