The feud between Trump and Federal Reserve Chair Jerome Powell has escalated this week. Here’s the latest act in this high-stakes drama:
🖊 Powell’s Defiant Stance: Independence Above All Powell publicly reaffirmed the Fed’s operational independence, stating that the president lacks authority to remove its chair. He declared his refusal to resign, vowing to serve until his term ends in May 2026. “Policy decisions will remain guided by economic data, not political pressure,” he emphasized.
🖊 Trump Doubles Down: A Legal Offensive On April 11, Trump escalated the battle by petitioning the Supreme Court to grant him legal power to fire heads of independent agencies—potentially including the Fed chair. If successful, this could set a constitutional precedent, enabling Trump to bypass traditional institutional checks.
🎭 A Long-Simmering Rivalry The conflict traces back to 2018, when Trump himself appointed Powell. By 2019, Trump blamed the Fed as the economy’s “only problem,” accusing Powell of overly aggressive rate hikes. Now, with Trump eyeing a White House return, his pressure tactics have grown bolder and legally strategic.
🖊 White House Prepares for Post-Powell Era Treasury Secretary Scott Bessent confirmed Trump’s plan to identify Powell’s potential successors by fall 2025. This signals the administration’s intent to overhaul Fed leadership after May 2026—or sooner if the Supreme Court rules in Trump’s favor.
A Battle Redefining Democracy and Market Governance Prolonged White House attacks risk eroding the Fed’s credibility and destabilizing economic expectations. The outcome could reshape the balance between U.S. democratic institutions and market governance.
Who will blink first? The tycoon-turned-politician or the central banker?
