Can Powell, the head of the US Fed, be fired by President Trump?

President Trump is calling on Powell, the head of the US Federal Reserve, to begin lowering interest rates right away. Powell decides to hold off on cutting interest rates until economic evidence supports it, despite Trump’s insistence that he do so. Since December, the Federal Reserve has maintained the benchmark interest rate between 4.25% and 4.5%.

Trump recently said to reporters in the Oval Office, “Believe me, if I want him out, he will be out of there real fast.” Powell needs to be fired right away! The President reaffirmed on his social media account, Truth Social.

An appeal against Trump’s dismissal of top executives from two independent agencies that are in charge of federal employees’ workplace protections is currently being heard by the Supreme Court. The Trump administration sees this as a proxy fight for control of the central bank.

Debate over the ownership and organization of the US Federal Reserve has also been triggered by this. The Federal Reserve is not “owned” by anyone, according to the Fed’s website, and Congress is the source of its authority.

Despite not being a component of the federal government, the Federal Reserve Banks were established by a congressional act. The Federal Reserve Banks are organized like private companies, while the Board of Governors is a separate government organization. So, is the Fed a public or private entity?

In November 2024, the Fed chief was asked if he would quit if the newly elected President Trump requested, and he responded he couldn’t since Trump is ‘not permitted under law’ to push him out.

Relationships seem to have worsened today, and Powell is once more under pressure from the White House to follow orders and lower interest rates.

Powell said the Fed will solely take into account what is best for Americans when making decisions, rejecting political interference in his speech at the Economic Club of Chicago on Wednesday.

President Donald Trump denied Janet Yellen a second term in 2017 when he selected Jerome Powell to head the Federal Reserve. Powell’s current tenure as chair runs until May 2026, and he was renominated by President Joe Biden in 2022.