Rumors are circulating over the internet, that US president Donald Trump may fire FED chair Jerome Powell. Crypto markets are on edge as pundits believe this may go both ways. But, real question is, can US president actually fire a FED chair?
US President Cannot Fire a FED chair, Legally
Jerome Powell was appointed as FED chairman by Donald Trump himself in February, 2018. He was again renominated for the second term by former US president Biden in 2021. Jerome Powell is a currently serving as a FED board member and his current tenure of 4 years as a FED chairman will end in May 2026.
Lately, both FED chairman and US president have not seen eye to eye over the differences on the tariffs and economic policies. They have often clashed publicly and critiqued each other’s approach to geopolitics and economics. Recently, as reported by coingape, president Trump asked chairman Powell to cut FED rates.
A Supreme Court ruling released on May 22nd 2025 stated that FED chairman is legally protected and cannot be fired by President Trump. The Supreme Court clarified that the relationship between FED and president is different than other agencies. Historically, a US president has never fired a FED chairman.
Jerome Powell was once asked that can president Trump fire him if re-elected, to which he replied, “Not permitted under the law”.
What Can President Trump Do?
While current laws do not allow Trump to directly fire the Fed Chair, he does have the option to not reappoint him when his term ends in May 2026. In the last FOMC meeting FED kept the interest rates unchanged citing uncertainty over the trump tariffs. The FED has maintained a cautious approach despite pressure from Trump Administration. Pundits are divided over the possibility of rate cuts in 2025.
Chicago Federal Reserve Bank President Austan Goolsbee recently said that a FED interest cut is possible in 2025 if tariffs are avoided by a trade deal. He said this based on his confidence on strength of US economy and cooling inflation. US Trade Court’s recent ruling to stop Trump tariffs was over ruled by an appeals federal court reinstating the Trump tariffs.
Recently, they even met raising suspicions about the next interest cuts but Jerome Powell said that any such decision will be made on the basis of current economic situation and not President’s demands.
The crypto and overall S&P500 remain on edge as markets eagerly await next decision on Trump’s tariff deals and FED chairman’s interest rate cut.
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Sunil Sharma
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on X at @sharmasunil8114 and reach out to him at sunil (at) coingape.com
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