Trump vs Powell: US administration studying options to fire Fed chair Powell | 10 key developments amid ongoing conflict

Trump admin studying option to fire Fed chair Powell: White House

US President Donald Trump and his administration are considering whether removing independent Federal Reserve Chairman Jerome Powell is a viable option, according to a top White House economic aide.

The ongoing tension between the President and Powell continues to escalate, with Trump demanding his "termination" and criticizing his actions as "too late and wrong."

"The president and his team will continue to study that matter," National Economic Council director Kevin Hassett told reporters when asked if firing the central bank chief was a possibility, one day after Trump lashed out at him.

Let’s take a closer look at the recent developments between the two sides.

• White House economic adviser Kevin Hassett said Trump’s team is still considering whether they can fire Fed Chair Jerome Powell.
• Trump claimed he has the authority to remove Powell “real fast.” Hassett’s comments followed Trump’s renewed criticism of Powell for not cutting interest rates.
• Trump said the Fed chair doesn’t “understand what he’s doing” and should lower rates.
• Hassett acknowledged that past legal analysis opposing Powell’s removal may no longer apply, suggesting new legal interpretations could change their approach. He did not specify the new legal analysis but hinted it may relate to a current Supreme Court case on presidential authority to fire federal board members.
• Powell maintains that he cannot be legally removed before his term ends in May 2026 and has no intention of stepping down.
• US President Donald Trump urged Fed Chair Jerome Powell to cut interest rates, citing global trends. Trump referenced the European Central Bank's anticipated seventh rate cut as context. He slammed Powell as "always TOO LATE AND WRONG" and called for his "termination."
• Trump's reaction came after Powell stated that the trade tariffs implemented pose a serious risk to the American economy by potentially accelerating inflation and dampening economic growth. He further warned that the central bank may struggle to maintain its dual mandate of price stability and full employment.
• In 2017, Trump appointed investment banker Jerome Powell as the 16th Chair of the Federal Reserve. Since his appointment, Powell has faced repeated criticism from Trump, who has called for his removal multiple times.
• In 2018, Trump sought to replace Powell over rising interest rates and even labeled him an "enemy." Trump has also questioned the Fed’s independence, insisting that the President should have influence over interest rate decisions.

Following multiple rate cuts in late 2023, the Federal Reserve has kept its key interest rate steady between 4.25% and 4.50% since December. This week, Chair Jerome Powell indicated that due to ongoing uncertainty—particularly around the impact of tariffs and other government measures—the Fed is maintaining a cautious, wait-and-see approach.