Donald Trump sends direct sacking message to US Fed Chair Jerome Powell. Does Republican President has the right to do so?

President Donald Trump slammed Federal Reserve Chair Jerome Powell on Thursday, reiterating his frustration that the Fed has not aggressively cut interest rates and saying that the central bank leader's "termination cannot come fast enough.”

Trump hinted at moving to fire Powell, whose term does not expire until May 2026. The Republican president's broadside comes a day after Powell signaled that the Fed will keep its key interest rate unchanged while it seeks "greater clarity” on the impact of policy changes in areas such as immigration, taxation, regulation and tariffs.

Powell also reiterated that Trump's tariffs would likely raise inflation and slow the economy, which could make it harder for the Fed to cut rates anytime soon. The Fed chair also suggested that the central bank will focus on fighting inflation in the wake of the tariffs, even if the duties did weaken the economy. Powell's comments contributed to a drop in stock prices Wednesday.


Powell was initially nominated by Trump in 2017, and he was appointed to another four-year term by President Joe Biden in 2022. At a November news conference, Powell indicated he would not step down if Trump asked him to resign.

He has also said that the removal or demotion of top Fed officials was “not permitted under the law.”

Trump's comments come with the backdrop of a legal case at the Supreme Court that could determine whether presidents can fire the heads of independent agencies such as the Fed.

The case stems from Trump's firings of officials from two independent agencies. The Supreme Court last week let the firings stand while it considers the case. It could issue a broader ruling this summer that would enable the president to fire Fed officials, including the chair.

Powell said the Fed is watching the case closely, adding that it might not apply to the Fed. Lawyers for the Trump administration have also argued that allowing the president to fire the two officials wouldn't erode the Fed's independence.

FAQs

Q1. Who is US Fed Chair?
A1. US Fed Chair is Jerome Powell.

Q2. Who is USA President?
A2. USA President is Donald Trump.