Donald Trump Considers Removing Jerome Powell as Fed Chair
"It’s something being looked into, but certainly, if there’s cause, the president has the authority to act.”
Quick overview
- The White House is reviewing whether President Trump can legally remove Fed Chair Jerome Powell amid controversy over a $2.5 billion renovation of the Fed's headquarters.
- Economic adviser Kevin Hassett confirmed that the president has the authority to act if there is cause, following budget director Russ Vought's inquiry into cost overruns.
- Trump has expressed frustration with Powell's performance, particularly regarding interest rates and the renovation budget, which he deems excessive.
- The potential removal of Powell raises concerns about the independence of the Federal Reserve and its implications for markets and monetary policy.
Amid growing controversy over a $2.5 billion renovation of the Federal Reserve’s headquarters, the White House is reportedly exploring whether President Donald Trump has the legal authority to remove Fed Chair Jerome Powell before the end of his term.
White House economic adviser Kevin Hassett confirmed Sunday that the issue is under review. “It’s something being looked into, but certainly, if there’s cause, the president has the authority to act,” Hassett said during an interview on This Week. The statement came after White House budget director Russ Vought sent the Fed a formal questionnaire seeking clarification on the cost overruns, which have exceeded initial projections by $700 million.
Trump Frustrated with Powell’s Performance
Trump has long had a strained relationship with Powell, criticizing him for not cutting interest rates more aggressively. “We should have the lowest interest rate in the world, but Powell has been very bad for the country,” Trump said.
The updated renovation budget further fueled the president’s frustration. “He’s spending $2.5 billion rebuilding the Fed — it’s insanity,” Trump told reporters over the weekend.
Although Powell’s term officially ends in May 2026, there are growing rumors in Washington that Trump is seriously considering replacing him sooner. Recent reports suggest Hassett himself is a potential replacement and was seen discussing the role with Trump in June.
Fed Independence at Stake
The possibility of removing Powell raises concerns over the independence of the Federal Reserve — a cornerstone of the U.S. financial system’s credibility. Any move perceived as political interference could have significant implications for markets and monetary policy.
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