Will Trump Fire Jerome Powell? Fed Chair Faces Increasing Pressure

President Donald Trump once again targeted Federal Reserve Chairman Jerome Powell, demanding that he resign immediately as tensions over interest rate policy flare up. Trump is angry that Powell did not cut interest rates, blaming the Fed for the high debt servicing costs that he believes are burdening the U.S. economy. His disappointment grew after Powell hinted that Trump’s tariffs were contributing to inflation, making it difficult for the Fed to justify cutting interest rates. Trump quickly fired back, accusing Powell of hindering economic recovery. Trump Amplifies the Request for Resignation Tensions escalated as Bill Pulte, head of the Federal Housing Finance Agency, accused Powell of lying during a Senate hearing and acting with political bias. Trump retweeted Pulte’s remarks on social media and doubled down on his demand for Powell to resign immediately.

Can Trump fire Powell? Legal hurdles remain. While Trump had previously threatened to remove Powell, experts believe that the legal path is not that simple. The Supreme Court has reinforced that the independence of the Federal Reserve is protected and forcing the Fed Chairman to resign before the end of the term may face significant legal challenges. When does Jerome Powell’s term end? Jerome Powell is currently serving a four-year term as Chairman of the Federal Reserve, which began in May 2022. His term will end in May 2026. Unless he voluntarily resigns, Powell will be protected by law from being removed without cause, making Trump’s threat more political than practical. Powell blames tariffs, Trump blames Powell Powell has pointed out multiple times that the ongoing tariffs introduced by Trump are driving inflationary pressures. This gives the Fed reason to be cautious about cutting interest rates, regardless of political demands. Some analysts are monitoring the potential expiration of tariffs around July 9, which could allow the Fed to ease its stance — but that is far from guaranteed. Cryptocurrency analysts and experts participate in criticism The pressure is not only limited to politics. Cryptocurrency analyst Matt criticizes Powell’s refusal to cut interest rates, noting that inflation has nearly reached the Fed’s 2% target. He compares it to previous election years when interest rate cuts were more pronounced and argues that Powell’s current stance may be influenced by politics.

Bitcoin price reacts with Bitcoin rising 2.62% to over $108,000 after the political incident, signaling the market’s sensitivity to Fed policy instability. While the likelihood of Powell resigning is still low, the escalating verbal conflict between Trump and the Fed is putting both the traditional and cryptocurrency markets on edge.