Trump vs. Powell: Will the Fed Chair Survive the Political Firestorm?

Jerome Powell's grip on the Federal Reserve is shaking as political winds turn stormy. With Trump's shadow looming, the Fed's independence faces its toughest test yet.

Pressure Cooker: Why Powell's Job Hangs by a Thread

Market watchers are placing bets—will Powell become the first Fed chair axed for not playing ball? The White House isn't subtle about wanting lower rates, but Powell's sticking to his inflation guns. Classic clash: short-term politics versus long-term economics.

The Trump Card: How Far Will the President Go?

Legal grey areas abound. While Fed chairs traditionally serve out terms, Trump's rewritten the rulebook before. One thing's certain: Wall Street hates uncertainty, and this showdown's brewing the perfect storm.

Bonus jab: Nothing boosts crypto adoption like traditional finance tearing itself apart. Bitcoin maximalists are loving the show.

President Donald TRUMP is once again targeting Federal Reserve Chair Jerome Powell, demanding his immediate resignation as tensions over interest rate policy boil over. Trump is furious that Powell has not slashed rates, blaming the Fed for rising debt-servicing costs that he claims are burdening the U.S. economy.

His frustration intensified after Powell suggested that Trump’s tariffs are contributing to inflation, making it harder for the Fed to justify rate cuts. Trump quickly fired back, accusing Powell of standing in the way of economic recovery.

Trump Amplifies Resignation Demands

The situation escalated when Bill Pulte, head of the Federal Housing Finance Agency, accused Powell of lying during Senate testimony and acting with political bias. Trump reposted Pulte’s remarks on social media and doubled down on his demand that Powell step down immediately.

This leads to the big question: Will Trump fire Jerome Powell?

Can Trump Fire Powell? Legal Obstacles Remain

While Trump has previously threatened to remove Powell, experts say the legal route is not that simple. The Supreme Court has reinforced that the Federal Reserve’s independence is protected, and forcibly removing the Fed Chair before the end of his term could face major legal challenges.

When Does Jerome Powell’s Term End?

Jerome Powell is currently serving a four-year term as Chair of the Federal Reserve, which began in May 2022. His term is set to end in May 2026. Unless he resigns voluntarily, Powell is legally protected from being removed without cause, making Trump’s threats more political than practical.

Powell Blames Tariffs, Trump Blames Powell

Powell has repeatedly pointed out that the ongoing tariff policies introduced by Trump are driving inflationary pressure. This gives the Fed reason to remain cautious with rate cuts, regardless of political demands. Some analysts are watching a possible tariff expiration around July 9, which may create room for the Fed to ease its stance — but that’s far from guaranteed.

Analysts and Crypto Experts Join the Criticism 

The pressure isn’t limited to politics. crypto analyst Matt criticized Powell’s refusal to cut rates, noting that inflation is already near the Fed’s 2% target. He compared it to past election years when rate cuts were more aggressive and suggested Powell’s current stance may be politically influenced.

Bitcoin Price Reacts Bitcoin jumped 2.62% to over $108,000 in the wake of the political drama, signaling the market’s sensitivity to Fed policy uncertainty. While Powell’s resignation is still unlikely, the growing war of words between Trump and the Fed is keeping both traditional and crypto markets on edge.