Donald Trump is increasing pressure on Federal Reserve Chair Jerome Powell to cut interest rates, and reports suggest he may even consider removing Powell from his role — a step that would be legally uncertain and historically unprecedented. Under current law, the Fed Chair can only be dismissed “for cause,” meaning misconduct, not policy disagreements.
Even if Trump can’t fire Powell outright, he might attempt to strip him of the Chair title while leaving him as a board governor until 2028. Such a move would likely trigger a legal battle, possibly reaching the U.S. Supreme Court, and raise concerns about the Fed’s independence. Trump is also said to be considering Kevin Warsh, a former Fed governor, as a possible replacement.