Trump’s Threat to Fire Powell Unlocks a Constitutional Fight Over Central Bank Independence

The Federal Reserve’s independence faces a direct challenge as President Trump has threatened to fire Chairman Jerome Powell if he remains at the central bank after his term ends May 15. Powell’s leadership role expires on that date, but he is entitled to serve on the Fed’s board of governors until 2026, and current rules allow him to act as chairman pro tempore until a successor is confirmed. Trump dismissed that continuity, saying, “Well then, I’ll have to fire him, okay, if he’s not leaving on time,” adding that he has “wanted to fire him” but “hate[s] to be controversial.”

Trump has nominated former Fed Governor Kevin Warsh to replace Powell. But the nomination hits a roadblock: Senator Thom Tillis (R-NC) has declared he will block Warsh’s confirmation unless the Department of Justice halts its investigation into Powell and the Fed over alleged criminal conduct linked to cost overruns at the central bank’s headquarters. Powell has publicly stated he will not step down while that investigation looms.

A federal judge has already blocked the DOJ’s effort to issue subpoenas to Powell and the Fed. Yet Trump insists the probe will go forward. “What they’ve done to that so it is probably corrupt, but what it really is is incompetent, and we have to show the incompetence of that,” he said, framing the issue as one of institutional failure.

This is not the first time Trump has moved to remove a Fed governor. Last year, he attempted to fire Governor Lisa Cook following accusations of mortgage fraud from Bill Pulte, director of the Federal Housing Finance Agency. No charges were filed. The U.S. Supreme Court is now weighing whether that removal was constitutional—a decision that could define the legal limits of presidential power over independent central bank officials.