The Legal Barrier Between Trump's Rate Demands and the Fed Chair's Desk

Jerome Powell will remain as acting chair of the Federal Reserve if Kevin Warsh is not confirmed by the Senate by May 15. Powell's term as chair expires that day, but he intends to stay until a successor is confirmed. President Donald Trump has pledged to fire Powell if he does not resign. The transition is currently stalled by Senator Thom Tillis, a Republican, who has vowed to block Warsh's advancement until a Justice Department probe into Powell concludes. Because of Tillis's opposition, Warsh needs at least one Democratic vote to move forward. The investigation, led by U.S. Attorney Jeanine Pirro, examines whether Powell misled Congress about a $2.5 billion renovation of the Fed's headquarters. Powell has dismissed the probe as a pretext for political pressure to cut interest rates, which currently remain above 4%. While Trump has called Powell a "knucklehead" and claimed he is "doing a lousy job," the president's ability to remove him is subject to a pending legal determination. Powell is a confirmed governor through 2027. The Supreme Court is currently weighing the scope of presidential power over the Fed in a case involving Governor Lisa Cook, whom Trump attempted to remove in August over allegations of mortgage fraud. A ruling is expected by early summer. If the Court limits the president's ability to remove Fed governors without cause, Trump cannot legally fire Powell from his governorship.