Trump said in 2018 he didn’t “believe” he had the “right” to fire Fed chief Jerome Powell, but he has repeatedly expressed displeasure with Powell’s interest rate policies.
Topline
President Donald Trump and Federal Reserve Chairman Jerome Powell’s yearlong feud escalated Thursday as the president urged Powell’s “termination,” the latest example of Trump testing the limits of the historic relationship between the Oval Office and the U.S. central bank and bringing questions of whether Trump has the authority to oversee such a “termination.”Key Facts
“Powell’s termination cannot come fast enough!,” Trump posted Thursday to his Truth Social platform, potentially discussing the end of Powell’s term as the U.S.’ top-ranking central banker slated for May 2026, though “termination” certainly connotes a more unnatural end to Powell’s position.
Trump actually tapped Powell to the Fed chief role in 2017, but he quickly soured on Powell, as Bloomberg reported Trump talked about firing him in December 2018.
Following that report, Trump said in a statement posted to then Treasury Secretary Steven Mnuchin’s social media he “never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so.”
Despite Trump’s own words, his actions during his second presidential term indicate a more aggressive interpretation of who he has the authority to fire, sparking questions over whether he will ultimately sack Powell as he did both Democratic commissioners of the Federal Trade Commission last month as well as members of the National Labor Relations Board and the Merit Systems Protection Board.
The firings challenge the 1935 Humphrey’s Executor decision from the Supreme Court, finding the president cannot fire leaders of independent federal agencies over policy disagreements, and the Supreme Court may hear an appeal from the ousted FTC officials this summer.
