In recent days, rumors have been swirling online that President Donald Trump might try to fire Federal Reserve Chair Jerome Powell. The mere speculation has caused ripples across crypto markets and Wall Street, as such a move could significantly impact interest rates, inflation, and the broader economy.

But what does the law say? The answer is simple: He can’t.

🧾 Supreme Court Confirms: The Fed Chair Is Protected

According to a U.S. Supreme Court ruling on May 22, 2025, the president does not have the authority to unilaterally remove the chair of the Federal Reserve. Powell remains protected by laws that ensure the independence of the central bank from political interference.

His current four-year term as Fed chair runs through May 2026. Until then, Trump can criticize him—but he cannot remove him.

“The law doesn’t allow that,” Powell stated when asked directly whether a president could fire him.

⚖️ Trump vs. Powell: A Battle of Economic Vision

Powell, originally appointed by Trump in 2018, has frequently clashed with him publicly in recent months. The main points of contention are Trump’s tariff policies and his repeated calls for rate cuts, which Powell has so far resisted.

At its latest meeting, the Fed chose to leave interest rates unchanged, citing uncertainty over trade tensions—despite mounting pressure from the White House.

🧠 What Can Trump Actually Do?

While he can’t fire Powell, Trump can influence the Fed in other ways:

🔹 He can refuse to reappoint Powell when his term ends in 2026,

🔹 He can appoint new board members, potentially shaping future Fed decisions.

Economists remain divided on whether rate cuts could come as early as 2025. Chicago Fed President Austan Goolsbee recently said such a move is possible—if tariff disputes ease.

💥 Markets on Edge

Cryptocurrencies and the S&P 500 remain on alert for any developments involving the Fed or the White House.

Meanwhile, a federal appeals court recently reinstated Trump’s tariffs, after they were previously blocked—adding more uncertainty for investors.

While Trump may not be able to remove Powell outright, pressure on the Fed is mounting, and so is market volatility.

💬 Reader question: Do you think the Fed can maintain its independence under presidential pressure? Should Powell cave to political demands?



#TRUMP , #Fed , #JeromePowell , #bitcoin , #CryptoMarket

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