Can Trump really fire Powell?
This battle between the president and the Federal Reserve is unprecedented!
The mutual struggle between the two will also begin this week...
Let's take a look at this grand drama
Powell is also standing up to Trump, reminding the public that the Federal Reserve operates independently, and the president has no authority to dismiss its chairman.
He announced that he will not resign and intends to complete his term, which will end in May 2026, emphasizing that policy decisions will continue to be guided by economic indicators rather than political pressure.
Nonetheless, Trump is escalating the battle!
On April 11, he requested the Supreme Court, further escalating the situation.
His goal is to obtain the legal power to dismiss the heads of independent agencies, which may include the chairman of the Federal Reserve.
If approved, this could set a constitutional precedent and allow Trump to bypass traditional institutional constraints.
Dramatically, the conflict between Trump and Powell has a long history—dating back to 2018, when Trump personally appointed Powell.
By 2019, Trump had already called the Federal Reserve the 'only problem' in the economy and accused Powell of tightening policies too aggressively.
Now, with Trump back in the White House, his pressure has become more direct and legally strategic.
Treasury Secretary Scott Basset confirmed that the Trump administration plans to begin identifying potential successors for Powell this fall.
This indicates that even without court approval, the White House is prepared to change the leadership of the Federal Reserve after May 2026.
But if the Supreme Court's ruling favors Trump, this timeline could be advanced.
In the short term, Powell may delay interest rate cuts to avoid the appearance of yielding to political pressure.
In the long run, continuous attacks from the White House may undermine the authority of the Federal Reserve and disrupt expectations.
The outcome of this confrontation could redefine the balance between American democratic institutions and market governance.
Who do you think will be out in this struggle between the two old men?#美联储独立性 #特朗普施压鲍威尔
