Federal Reserve Chair Jerome Powell is reportedly on the verge of being fired, according to Florida Congresswoman Anna Paulina Luna.
“Hearing Jerome Powell is getting fired! From a very serious source,” Luna posted on X (formerly Twitter), adding, “I’m 99% sure firing is imminent.”
This claim adds fuel to an ongoing feud between Powell and President Donald Trump, who has frequently criticized the Fed Chair for not slashing interest rates. Trump believes a rate cut would save U.S. taxpayers billions and stimulate economic growth by reducing the cost of the federal government’s debt.
Powell, however, has pushed back against such political pressure, asserting that the President cannot legally fire him. Yet, legal scholars remain divided.
The Trump-Powell Tensions
Powell previously commented that the Fed might have cut interest rates if not for Trump’s tariff policies. The central bank paused rate changes after factoring in the potential inflationary impact of the tariffs.
Meanwhile, Trump intensified his criticism not just of Powell but the entire Federal Reserve Board.
“The board just sits there and watches, so they are equally to blame,” Trump said.
Despite the political drama, Powell left the door open for a potential rate cut at the Fed’s next meeting scheduled for July 29–30.
“I wouldn’t take any meeting off the table or put it directly on the table,” he stated, though most economists predict a rate cut might not come before September.
Can the President Legally Fire Powell?
While Powell maintains he cannot be fired by the President, the legal reality is murky. The 1913 Federal Reserve Act was designed to insulate the Fed from political interference. A 1930s Supreme Court decision further held that a Fed chair can only be removed for cause—such as misconduct, inefficiency, or dereliction of duty.
Russel Morgan of The Morgan Legal Group commented that any move to dismiss Powell would likely spark a lengthy legal battle.
Jerome Powell’s current term as Fed Chair is set to end in May 2026. Until then, any attempt at removal would likely be contested both legally and politically.